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Deutsche Post says price hikes in Germany could be lower than expected

BERLIN (Reuters) - Deutsche Post (DPWGn.DE) on Tuesday said Germany's federal network agency BNetzA had sent it a draft decision on planned postage regulations which could result in lower than expected price increases.

According to the draft decision, the company would be allowed a pricing headroom of 4.8 percent from April this year until 2021 on products subject to a price-cap regime, Deutsche Post said in a statement.

"Should this become the final decision the allowance to increase prices over that period would be lower than expected", it said, adding that additional cost reduction measures would be required in order to achieve profit targets.

Deutsche Post's share price was down 2.7 percent at 1257 GMT.

(Reporting by Tassilo Hummel; editing by Thomas Seythal)