Australia Post has announced an increase in parcel delivery charges by almost 5 per cent as it responds to ongoing inflationary pressures.

From July 1, domestic parcel postage prices will rise by an average of 4.95 per cent, while international parcel and letter services will increase by around 3.75 per cent.

Contract customers will also face price adjustments of about 4.25 per cent across selected services, according to the postal operator.

Australia Post said rising inflation has significantly impacted its operating costs, prompting the need for revised pricing despite efforts to keep increases as low as possible.

The company noted that it had previously absorbed some cost pressures and kept price rises below inflation levels for certain customer groups in recent years.

In addition to parcel charges, fees for services such as ID photos, mail redirection, and mail holding will also increase slightly.

However, Australia Post has also announced a reduction in its fuel surcharge for contract customers, partially offsetting some of the overall cost increases.