USPS Raises Postage Prices Including 5-Cent Forever Stamp Increase: How Your Mail May Be Impacted
You may not have even noticed, but sending mail just became more expensive (again). Prices continue to climb as the U.S. Postal Service implemented price hikes for the second time this year. Made effective July 14, the new rates include a five-cent increase in the price of a First-Class Mail Forever stamp from 68 cents to 73 cents. That’s not all. The stamps fall among other postage price adjustments raising mailing services product prices approximately 7.8%.
New costs of stamps and other postage
Additional price raises include metered 1 oz. letters from 64 cents to 69 cents; domestic postcards from 53 cents to 56 cents; international postcards and 1 oz. international letters both from $1.55 to $1.65; and additional-ounce pricing for single-piece letters from 24 cents to 28 cents.
“The Postal Service is also seeking price adjustments for Special Services products, including Certified Mail and money order fees,” the notice of the price changes says. “Notably, there will be no price increase for Post Office Box rental fees, and the Postal Service will apply a price reduction of 10 percent for postal insurance when mailing an item.”
Why did postage prices increase?
The changes were placed in order to keep up with the evolving mailing and shipping marketplace, USPS says, adding that the new prices are a necessary step to achieve the organization’s Delivering for America 10-year plan for financial stability.
In 2021, the USPS announced its goals for the next decade on the basis of transforming “??from an organization in financial and operational crisis to one that is self-sustaining and high performing.”
The plan's initiatives are designed to reverse a projected $160 billion in losses over 10 years by achieving break-even operating performance while improving the reliability and predictability of service, the postal service notes.
“After 16 years of pricing policies misaligned with organizational needs, the Postal Regulatory Commission provided a new pricing framework for market dominant products in 2020,” the notice states. “Since March 2021, we have taken a more rational pricing approach including the judicious implementation of new and existing pricing authority. As we implement rate changes, USPS remains committed to making sure mailing and shipping rates remain among the most affordable in the world.”
In 2023, the postal service announced its financial results for the fiscal year, during which it saw a net loss totaling $6.5 billion compared to net income of $56 billion for the prior year, citing significant impact of inflation on operating expenses. Total operating revenue was $78.2 billion for the year, down by $321 million compared to the same period the year prior. Package revenue increases were offset by mail revenue declines, the USPS explained.
"Although we are just in the early stages of one of the nation's largest organizational transformations — which is improving our processing, transportation, and delivery operations — we are already providing more consistent, reliable, and timely delivery to America's businesses and residences," Postmaster General Louis DeJoy said at the time.
Postage price changes in recent history
This is the latest of quite a few changes over the last year. Price increases took effect in July of 2023 raising rates including a three-cent increase in the price of a First-Class Mail Forever stamp from 63 cents to 66 cents. Then, in January 2024, prices went up again including a two-cent increase in the price of a First-Class Mail Forever stamp from 66 cents to 68 cents and overall mailing service raise of approximately 2 percent.
This most recent price inflation ties the five-cent hike between January 2018 and January 2019, when postage in cents per ounce for domestic letters climbed from 50 to 55 cents, for the most significant postage price jump in USPS history.
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