Explainer: Why has the cost of sending a letter gotten so expensive in New Zealand?

Explainer - Want to send a postcard to your nana in Timaru? It's going to be a bit dearer from today.

The price of sending a standard letter is going up to $3.60 from 1 July, the latest in a series of near-annual increases that have seen letters go up from a mere $1 at the start of 2018.

NZ Post has faced headwinds for some time, and earlier this year announced the closure of many service counters and more likely cuts to delivery days.

NZ Post chief executive David Walsh said the latest postage hikes come as mail volume continues to drop.

"NZ Post regularly reviews prices to ensure they reflect costs and enable us to maintain a reliable and sustainable nationwide mail service," he said.

"Postal pricing is influenced primarily by the continued decline in mail volumes, with inflationary pressures adding to the challenge."

NZ Post has said they're in the middle of what it's called "a period of transformation," shifting emphasis towards parcel delivery.

What are the new rates?

Standard letter prices increase by 70 cents to $3.60, while large and oversize letters increase by 70 cents to $4.90 and $6.20 each.

ReplyPaid and PrePaid envelopes also increase and new rates are introduced for International Bulk Mail.

Other charges for sending international mail went up in May.

How slow has it gotten for mail?

New Zealand addresses currently receive an average of just one or two letters each a week, Walsh said.

"This is down from over 10 per week when letter volumes were at its peak. With a largely fixed cost national network, this drop in volume significantly increases the cost to deliver each mail item."

According to NZ Post's last annual report, 158 million mail items were delivered in fiscal year 2025, down from 187m in 2024, while 88 million parcels were delivered, up from 84m in 2024.

New Zealand addresses currently receive less than two letters each per week, compared to 7.5 in 2013, a spokesperson told RNZ.

And it's not expected to get better.

"Over the next few years New Zealand addresses will be receiving less than one letter per week," Walsh said.

Has sending a letter really risen that much?

In a little over 20 years, the cost of sending a letter has risen around a whopping 700 percent.

For years, the price of sending a letter was pretty stable - from 1995 to 2004 it stayed at 40 cents. It rose to 45 cents in 2004, making the latest $3.60 rise a 700 percent increase.

The cost of a stamp started jumping dramatically about 10 years ago. Back in 2016, posting a standard letter cost $1. Here's what it's been rising to since:

2018: $1.20

2020: $1.40

2021: $1.50

2022: $1.70

2024: $2.30

2025: $2.90

2026: $3.60

That is well outpacing the rate of inflation, according to the Reserve Bank's inflation calendar. A $1 stamp at the start of 2016 would be just $1.37 now if it stayed at the general rate of inflation.

Other countries have also seen costs rise as mail volumes decline.

An American first-class stamp is currently US78 cents or NZ$1.38 and Australian standard letters are A$1.70 (NZ$2.06), although a British 1st Class Royal Mail stamp is £1.80 or a hefty NZ$4.22.

Walsh said NZ Post is continuing to look for ways to reduce costs.

"Over years of declining mail volume, NZ Post has worked hard to limit price increases through efficiency gains and network changes. However, there are practical limits to the cost reduction this can achieve without affecting service levels."

Of course, if you've held on to a roll of KiwiStamps since their introduction in 2009, you're good as gold because they hold their value perpetually, meaning they'll still be good no matter how high prices for sending a letter become.

Are people still sending letters, though?

There's definitely a lot less of them, but they're out there.

David Marshall, national president of 50-plus advocacy organisation Grey Power, said there's a ripple effect on many seniors who once relied on mail.

"Escalating postal costs have been very disruptive for a significant portion of our older members - especially those who are not computer savvy and have no email address.

"For them the rampant increases in postage have been a real barrier to maintaining social contact as they become less mobile."

Although many people deal with bills electronically these days, some still are sent through the mail for an extra fee. NZ Post said it does not hold figures on how many people still get bills such as power and water through standard mail.

The reductions in delivery days and higher costs also affect things like magazine subscriptions.

Grey Power's quarterly magazine was one of the casualties, Marshall said, as costs of mailing it hit $200,000 in 2024.

"As a not for profit we simply could not continue to operate with such significant cost increases, and certainly no improvement in services offered in compensation for the price escalations."

The organisation shifted to a mostly online model and a $10 extra annual cost for those still wanting home delivery.

"With the current cost of living crisis many members then opted to no longer receive home delivery, and are as a consequence less well informed."

Give it to me straight - is mail doomed?

It may be more expensive, but for now, the postie will still get that card to your Timaru nana.

"NZ Post is committed to continuing to provide a commercially sustainable mail service for New Zealanders, and we will continue to deliver mail for as long as Kiwis are sending it," Walsh said.