Prices for postal services at Portugal’s privatise post office are to go up an inflation busting 4.5% from April 2nd.last year's price rise of 2.4% was well above the inflation rate of 1.4% but, despite this boost, the privatised post office’s management has failed to stem an inexorable decline in income.
The business has failed to get a grip on costs, despite a branch closure programme that has caused uproar and is relying in above inflation increases to bolster its flagging cash flow.
“The average increase will be higher than last year and above the inflation recorded in 2017,” according to a CTT statement sent today to the Securities and Exchange Commission (CMVM).
The average annual change in the price in a basket of mail services, including letters and parcels, will go up 4.5% with bulk and contracted mail rising 4.1%.
The costs of setting up an in-branch bank, closing down selected branches and maintaining high dividends despite low profits, have yet to result in increased efficiency. Those who bought shares when the post office was privatised are still nursing considerable losses.
