Last updated 11:21, Tuesday, 08 April 2008

THE price of posting standard first and second class letters has risen.

A first class stamp for smaller items weighing up to 100 grammes now costs 36p, up 2p. The cost of a second class stamp has gone up from 24p to 27p.

Consumer watchdog Postwatch criticised the increases, announced in December, after Royal Mail's deliveries were hit by last year’s industrial action.

Despite the rises, Royal Mail estimates it will still lose 6p on every stamped letter and parcel it delivers. Last year, Royal Mail lost £178m on stamped mail.

It has also come under pressure from competitors in the more lucrative business mail market. Some large companies have switched their business to firms they consider to be either cheaper or more efficient than Royal Mail.