UK Royal Mail Plans More Cost Cuts Because of Inflation
11:54 GMT 19.05.2022 (Updated: 15:19 GMT 28.05.2023)
© AP Photo / Alastair GrantFILE - In this file photo dated Thursday, Sept. 12, 2013, Royal Mail vans lined up at London's largest sorting office Mount Pleasant
© AP Photo / Alastair Grant
The UK Office for National Statistics said on Wednesday that the annual inflation rate in the United Kingdom climbed to 9 percent in April from 7 percent a month earlier, hitting a 40-year high.
The UK's Royal Mail warned on Thursday that further price rises are likely and that it will need to cut costs as inflation soars, according to the Sky news.
The 500-year-old postal service said that it aimed to make cost savings of £350 million over the course of its present financial year, up from the £290 million it had previously tabled.
According to reports, Royal Mail was not planning further job losses to meet the new target, after it announced in January about 700 management jobs would go as part of its cost-cutting plan.
In April, the cost of posting letters rose by an average of around 7 percent, and parcel prices by an average of about 4 percent.
In early May, the Bank of England raised its forecast, predicting that inflation in the UK will reach an all-time high this year, exceeding 10 percent in the fourth quarter, as food and energy prices surge.