Royal Mail has said it will need to rise prices and cut costs in the face of soaring inflation.

The company warned that it sees “significant headwinds” from rising costs including wages, energy and fuel.

Royal Mail revealed that it aimed to make cost savings of £350m over the course of its current financial year in an attempt to bolster its position.

Inflation hit its highest level in 40 years yesterday amid the deteriorating cost of living crisis.

The cost of a first-class stamp currently stands at 95p and a second-class stamp costs 68p.