Jersey Mail are putting their prices up by 3p to 37p on a UK letter – a rise of around nine per cent – and 1p, up to 34p, on a local letter.
And the company say that without a £1m cost-cutting exercise this year, the increases would have been bigger.
Jersey Post face an additional £3.6m in charges from Royal Mail under the deal, which starts from April next year.
Postal rates to other European and international destinations will also go up by April, but will be set at a maximum of 2.5 per cent.
Other Post Office services like PO Boxes, parcels or mail redirection will also go up by 2.5 per cent.
Postal Committee chairman Deputy Patrick Ryan said that the price rises, which start from 4 April, were unavoidable.
He said: ‘Having to introduce new postal rates is always regrettable but in addition to other increased costs we were faced with having to meet further Royal Mail charges for mail to the UK amounting to some 36 per cent on current rates.’
