Canada Post is proposing an increase to regulated postage rates next year, bringing the price of most stamps up by 25 cents to $1.24.

The organization says it鈥檚 kept letter mail rate increases to a minimum over the past decade and the one-time increase would help align stamp prices with the rising cost of providing the service.

Canada Post says letter mail volumes have decreased by 60 per cent over the last two decades while the number of addresses to serve has gone up.

In August, Canada Post鈥檚 board chair said its financial situation was unsustainable as it deals with not only lower letter volumes but also more competition in parcel delivery.

Canada Post says that if approved, the new rates would take effect on Jan. 13 after the holiday mailing season.

It says the new rates would generate about $80 million in additional gross revenue in 2025.

The Canadian Press