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Yes. I believe reading a lot improves your literacy as you learn a bigger vocabulary and sometimes even how to pronounce words.

E.G. While reading Terry Pratchett I saw the word "Bursar" I thought it was pronounced "Bur - Sar" my father told me it was more "Bur-ser". Hence, I learned a new word, and how to pronounce it.

^^ Wow... That was deep.

Both of my Grandmothers retired to teach English, so I had alot of it from birth on. Some of my best memories are of my Grandma's reading stories to put us to sleep, and the grammar and spelling books one of my Grandma's had that had dragons and fairies and such in it. Some great memories there. My Mother also used to read for long hours to us out of adventure books and the like and then would let us take turns reading if we wanted. It really helped me out when it came to literacy skills from a young age.

Absolutely. The more one reads, the more one learns. You can learn new words, writing styles, etc. by reading. It's also beneficial to be read to as a small child. The brain is forming neural pathways that will last a lifetime in those early years (1-5) that can never be duplicated after age five.

I know for a fact that I wouldn't be as literate as I am if my parents hadn't read to me almost every single day when I was little. Not just little kids' books either, but books from the Time Life fantasy series (Wizards and Witches, Dragons, Gods and Goddesses). I learned about other cultures and learned stories I can still remember to this very day from those books.

I only read what is assigned to me; I do not do any recreational reading. However, you may notice that I never misspell a word, and my use of grammar is far above average.
(If I do misspell a word, it is only because I am in a hurry, not because I do not know how to spell it.)

Bingo.

Although, I do read sometimes on the side; it's normally so convoluted that it wouldn't help my spelling for s**t.