The consumer watchdog in Australia has given its acceptance for the proposed hike in postage prices, second price rise in two years, by the Australian Post. The cost of a basic stamp will increase to 60 cents from current price of 55 cents.

The proposed increase in postage prices will be implemented from June 28 this year. However, the consumer watchdog also said that it will not entertain any application for price rise for two years.

The Australian Competition and Consumer Commission said that it is not going to make any objection for the proposed price increases as Australia Post is facing a loss in its mail services this year. ACCC had rejected a similar request by Australia Post last year.

ACCC said that it had rejected the previous increase due to concerns that Australia Post was not cutting its costs sharply enough in response to the decline in letter volumes. ACCC Chairman Graeme Samuel said that now the situation has improved. ACCC said that it has assessed the need for a price rise based on Australia Post achieving an efficient level of cost reduction higher than it has forecast.

“Australia Post has now started to implement cost reduction strategies, however the ACCC considers that its cost reductions could be larger,” said Graeme Samuel.