The cost of a basic Australian postage stamp is set to jump, and soon

The cost of a basic postage stamp will rise next month from $1.20 to $1.50 with the Albanese government announcing it will not oppose Australia Post's plea for financial help amid inflation pressures and historic declines in letter deliveries.

The $0.60 price of concession stamps and the $0.65 price of seasonal greetings stamps will remain the same. These stamps have not increased since they were launched nearly 10 years ago.

The new $1.50 stamp price will start on April 3.

The decision follows assessment, including two rounds of public consultation, by the independent Australian Competition and Consumer Commission. In its March 18 decision, the ACCC noted the financial pressure on Australia Post's letter services including increased costs of delivery combined with reduced revenue.

Australia Post sought the stamp price increase last September after posting a full-year earnings loss driven by the decline in letter deliveries.

"I have carefully considered a number of factors in making this decision, including the ACCC's finding that the proposed increases are on a cost-recovery basis," Communications Minister Michelle Rowland said in a statement.

"I thank those who provided feedback to the ACCC over previous weeks.

"I look forward to working with Australia Post to improve its financial sustainability, including the implementation of the Albanese government's broader modernisation reforms in the coming months."

The minister also noted changes in the consumer price index and Australia Post's obligations to the Australian community.

Ms Rowland said she and the ACCC noted the average Australian sends approximately 15 small letters a year, which would add a combined $4.50 a year with the price increase.