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Royal Mail to raise stamp prices

The price of a first-class stamp is to increase by 2p to 62p and second-class stamps by 3p to 53p, Royal Mail announces.

Postal workers have voted overwhelmingly to accept what their trade union called "a ground-breaking" pay deal.

Royal Mail says it is "confident" about hitting financial targets after the group reports a 2% rise in revenues in the nine months to 29 December.

The government "botched" the privatisation of Royal Mail, short-changing taxpayers by hundreds of millions of pounds, Labour says.

Royal Mail, the newly-privatised postal service, is to join the FTSE 100 index of blue-chip companies following its strong share price surge.

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