Deutsche Post is anticipating a significant increase in postage rates for standard letters and postcards within Germany, according to Nikola Hagleitner, a board member responsible for the company’s postal and parcel businesses. Hagleitner is urging the Federal Network Agency (Bundesnetzagentur), the regulatory body responsible for approving postage price increases, to more comprehensively consider the current cost development and the accelerating decline in letter volumes when making future decisions.
The last increase, implemented earlier this year, raised the price of a standard letter to €0.95 from €0.85. While acknowledging this adjustment, Hagleitner maintains that it is insufficient to cover the costs associated with modernizing Deutsche Post’s infrastructure. She emphasizes that revenue generated by the company’s operations is reinvested in Germany.
The formal application process for a further rate increase is slated to begin in January, with a decision expected towards the end of next year. While refraining from speculating on the outcome, Hagleitner expressed her expectation of a “significant increase.
Addressing the broader question of whether postage in Germany is comparatively low, Hagleitner declined to offer a direct assessment, suggesting individual evaluation. Comparisons with other European countries reveal a stark contrast – Germany’s standard letter rates are among the lowest in Europe, while labor costs are among the highest, creating a structural imbalance that the company aims to address through price adjustments. Denmark, for example, charges €4 for a standard letter, reflecting a much lower volume of mail.