Germany's Deutsche Post wants postage stamp price increase

BERLIN (Reuters) - The price of a postage stamp in Germany must increase next year to cover rising costs, postal service operator Deutsche Post said on Tuesday.

"In view of drastically increased costs due to inflation, higher energy prices and the very high tariff settlement in 2023 as well as an unexpectedly strong fall in letter volumes, there is no way around an increase in postage charges," said Nikola Hagleitner, CEO of Deutsche Post's domestic post and parcel division.

The company said forecasts from 2021 on which current pricing is based are no longer accurate.

It has applied to the federal network regulator to lift a price cap currently in place until the end of 2024, with the goal of raising its postage stamp prices next year.

Deutsche Post said the cost of a stamp in Germany - 85 euro cents ($0.9357) for a standard letter - is below the European average despite relatively high salaries.

It did not give details on the price increase it is seeking.

The network regulator said it was considering Deutsche Post's application, adding that it would "initiate a new procedure ... if the facts presented are convincing and meet the requirements for the application".

($1 = 0.9084 euros)

(Reporting by Matthias Inverardi, Writing by Rachel More, Editing by Friederike Heine)