Royal Mail is to be given the freedom to set its own prices for first-class stamps and other mail.
Ofcom said that, subject to the safeguards it was putting in place, Royal Mail will make decisions on the price of stamps, not the regulator.
Ofcom has put a cap on the price of second-class stampsfor standard letters to protect vulnerable consumers.
Over the next seven years, this will ensure that Royal Mail can price second-class stamps no higher than 55p.
The price of a first class stamp is to rise by 30 per cent to 60p.
There is a bigger picture to today's stamp price rises - creating a Royal Mail that is ripe for sell off.
So can you make a profit by selling stamps on after the price rise?