German regulator gives Deutsche Post scope to hike letter prices

Oct 12 (Reuters) - Germany's regulator said on Monday that DHL's Deutsche Post may increase letter prices, given a sharp decline in the volume of letters, and offered its proposal for postage rate increases.

• Deutsche Post may increase letter prices by 20.35% and prices for private customer parcels by 10.72%, the Federal Network Agency said.

• The agency said it has remained below Deutsche Post's requested adjustments and has not taken into account rising value-added and overhead costs claimed by the company.

• It said the new rates are intended to apply in the years 2027 and 2028.

• Deutsche Post, competitors, consumer protection organisations and other interested parties may submit comments on the proposed decision by October 30.

• The final decision is expected to be published in November.

(Reporting by Tom Kaeckenhoff, writing by Linda Pasquini, editing by Thomas Seythal)