By Marcus Leach

The Daily Mail is set for its first price rise in three years as it looks to cover falling advertising revenues and and the increase in cost of printing.

As of Monday the cost of the Daily Mail will rise by 5p to 55p, although the move to increase the price saw shares in the company fall to an 18-month low.

The price rise is the first since April 2008, and is being seen as a defensive move by analysts.

A statement from Daily Mail and General Trust (DMGT) said that whilst circulation had been "significantly outperformed the market throughout the last year, the continuing high cost of newsprint means it is necessary to increase the cover price of the newspaper." It added that the increase would also "mitigate some of the impact of the recent decline in advertising revenue."

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