Australia Post has blamed inflationary pressures for plans to hike parcel delivery services, with prices set to rise to as much as 10 per cent.

The price rises will take effect from July 3, and will range from between 3.5 per cent and 9.95 per cent.

“At Australia Post, we are working harder than ensure that we provide sustainable services and products for our customers,” Australia Post executive general manager of parcel, post and e-commerce services Gary Starr.

“We’re writing to you today to advise of changes to the price of some of our retail and MyPost Business products and services.

“As a self-funded organisation, we are challenged by growing costs and these changes are necessary to help address increasing losses.”

Included in the price changes is a 4.6 per cent leap for the international parcel services, a 5.3 per cent hike in business letters, a 8.7 per cent jump for unaddressed mail services, and — most troubling for digital retail businesses — a 9.95 per cent price hike for domestic parcel services.

On top of this, a manual handling surcharge for oversized package with jump from $11.50 to $14.

Australia Post CEO Paul Graham warned during the recent budget that the current system is untenable without government support.

“Given Australia Post’s deteriorating financial position, there is a risk that the Australian government will need to consider providing financial assistance to Australia Post in the future,” Graham said.