The price of a national postage stamp is to increase by 15 cent from next month bringing the cost of posting a standard letter within the country to €1.25.
The cost of sending a letter abroad will increase by 20 cent to €2.20.
The changes will come into effect on 1 March.
The price of a book of 10 stamps will remain at €11 until the end of the year, An Post says, representing a saving of 15 cent per stamp.
Seasonal discounts and price promotions will also continue, it said, and existing N (national) and W (worldwide) stamps will remain valid and fully usable after the new prices come into effect.
An Post said the increased charges are necessary to counter sharp price inflation in areas such as transport, fuel and energy.
It is the second time An Post has raised postage stamp prices in less than a year.
At the end of May last year, the price of a national stamp was raised by 10 cent to €1.10, while the cost of an international stamp went from €1.70 to €2.
However, that increase was originally intended to come into effect in February 2020 but it was deferred after the onset of the Covid-19 pandemic. That was the first increase in the price of a standard stamp in more than four years.
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"International air freight prices have increased by up to 360% in the pandemic, transport cost inflation is running at 18% and electricity, gas and fuel costs are up 27% year on year," An Post said in a statement announcing the most recent price move.
"The new postal tariffs will help ensure the continuity of next-day national letter services based on customers paying the same price for delivery of letters nationwide regardless of distance, as well as ongoing investment in letter services, staff and infrastructure."
Small and medium enterprises will be able to continue to avail of the €1.10 stamp price through the An Post Advantage Card with increased discount of 12% on larger stamp packs and 34% discount on parcel postage available until the end of the year.
Bulk mail rates will increase by 6 cent and meter rates by 10 cent, it confirmed. Large mailers, including meter customers can receive discounts for high volume postings.
An Post says that even with the new cost structure, the cost of posting a letter in Ireland is still below the European Union and UK average of €1.58, while the comparable worldwide tariff is €2.27.
"An Post is rebuilding the postal infrastructure for the future by developing new service and product choices to suit how we live now and how we will choose to live, work, communicate and connect in the future," David McRedmond, CEO of An Post said.
Speaking to Morning Ireland, he said the increase was in response to what he referred to as 'hyper-inflation' in the postal industry globally.
"If you look at something like air freight, with far fewer planes flying during the pandemic and they're not yet back to schedules, they're up 340% so we've huge input cost increases," he explained.
"We hate doing these price increases, but overall the price increase is 5% which is the rate of inflation," he added.
Mr McRedmond pointed out that SMEs that have an Advantage Card and those who buy the book of ten stamps would be exempt from the price increases for the rest of the year.
However, he didn't rule out further price increases.
"We don't know quite what will happen next year. If input prices change or drop, we change prices," he said.
"Who knows where inflation is going? Hopefully, 5% - where it is at the moment - is where it will top out. None of us can predict that with certainty."
Mr McRedmond pointed out that parcel prices to Germany, France and the Benelux countries were also being cut by 50%.
"We've managed to cost engineer them in a way that's cheaper," he explained.
Community Focus supports including free postage to and from nursing homes, and free newspaper delivery for older customers will continue indefinitely, An Post confirmed.
Price hike is 'very badly timed'
Policy advisor with the Consumer Association Dermot Jewell said that the price hike is "very badly timed".
"The focus is so much on inflation at the moment. I mean, whether it be energy, heating, fuel, food, rent, it matters not and this increase at this time is very, very badly timed and very badly placed," Mr Jewell said.
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He added: "I think many, many businesses are looking at this and seeing what's happening out there in real life, in real time, and they're seeing what possibility they have to absorb it. It's very clear from these two increases that there is not even a mild attempt to absorb it. They've gone way beyond the current rate of inflation."
Kerry Independent TD and postmaster Michael Healy Rae, said that he is "very disappointed" by the An Post price increase.
Speaking to RTÉ's Today with Claire Byrne, he said: "I'm very disappointed as a postmaster and as a politician representing people who are finding it very difficult to manage at the moment, because of the ever increasing cost of everything.
"I do not want a situation where people will say 'well we won't use the post office,' because remember, if you don't use your post office, you will lose your post office."
Post offices are paid per transaction, the Kerry TD said, adding that if people turn away from using this financial institution, it will "drive a nail in the coffin" of the local post office.
