Royal Mail has announced that the price of stamps in the UK is set to increase from the end of March.

From 27 March, the price of a First Class stamp will rise by 1p to 65p and the price of a Second Class stamp will increase by 1p to 56p.

Postage for a large First Class letter will increase by 2p to 98p. While a large Second Class letter will go up by 1p to 76p.

The jump in prices is in line with the Consumer Prices Index (CPI), which rose by 1.8 per cent in the year to January.

Royal Mail said it understood how hard it was for many companies and households in the current economic environment.

“For that reason, we have considered any pricing changes very carefully and have sought to minimise any impact on our customers," it said.

The group added that increases were needed to “ensure the sustainability” of the service.

And Royal Mail also added that UK stamps represent good value compared to the rest of Europe.

The average price of a First Class stamp in Europe is equivalent 87p it said, while an average second class stamp is 67p.

Earlier this year, Royal Mail said the number of letters being posted in the UK fell by 6 per in the nine months to 25 December.