By Friedrich Geiger

FRANKFURT--German mailing and logistics company Deutsche Post AG (DPW.XE) may be allowed to raise stamp prices at a faster pace in coming years, according to a proposal by the regulator Bundesnetzagentur.

The watchdog calculates the stamp price increases it permits as the general inflation rate minus assumed productivity increases. In its proposal for stamp price hikes, Bundesnetzagentur sees the productivity increase at 0.2%, lower than in recent years. Mailing companies and consumer protection organizations can comment on the proposal by Nov. 6.

"The digitalization's impact on the mailing market and the general decline of private letter volumes reduce the Post's leeway to generate productivity increases," said Bundesnetzagentur.

Write to Friedrich Geiger at friedrich.geiger@wsj.com

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