UK's Royal Mail has said that it will increase the price of stamps by 2p to 62p and second class by 3p to 53p in order to improve earnings.

The mailing service said that the price of first class stamp to rise by 2p to 62p and second class by 3p to 53p. The increases will take effect on 31 March, 2014, two years after the previous increase in prices. The mailing service, which is recently privatised, has said that it has taken the impact on customers into consideration before announcing the price rise.

The cost of a first-class stamp will increase by 2p to 62p this month while the second class stamps will now cost 53p. The Royal mail pointed out that it could have raised second-class stamp prices to 57p. It also said that the prices are still lower than the prices on the continent. The average costs are 67p for first-class postage and 60p for second in Europe.

Consumer Futures pointed out those first-class prices have increased by 59 per cent and second-class now cost 77 per cent higher since 2009.