By Mauro Orru

Deutsche Post AG will soon raise prices for small parcel shipments, passing on to customers what the German freight-and-logistics group called steep increases in airfares, delivery and labor costs.

The company's DHL Paket division said Monday that higher prices would kick in on July 1 for private customers who want to ship light parcels. The price to send a 2-kilogram parcel will increase to 5.49 euros ($5.77) from EUR4.99.

"Higher transport, delivery and labor costs as well as general cost inflation make price increases in national and cross-border parcel business unavoidable," the company said in a statement.

The move comes after Germany's annual rate of inflation rose in May at a faster pace than in April, beating forecasts and delivering the highest reading since December 1973, according to data from German statistics office Destatis. Consumer prices rose 7.9% on year measured by national standards, and 8.7% on year by European Union harmonized standards.

However, DHL Paket said heavier shipments won't incur higher charges. Sending a 5-kilogram parcel, the most popular with private customers, will cost EUR6.99 instead of EUR7.49, while prices for parcels from 10 kilograms to 31.5 kilograms will remain unchanged, the company said.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

June 13, 2022 05:39 ET (09:39 GMT)