The United States Postal Service (USPS) stated on Oct. 6 that it wants to raise the price of first-class mail stamps to 68 cents from 66 cents effective on Jan. 21.
The proposal, which must be approved by the Postal Regulatory Commission, would raise mailing services product prices by about 2 percent, significantly less than prior price hikes.
Stamp prices are up by 32 percent over the past four years; they were 50 cents in early 2019. First-class mail volume fell by 3 percent last year to its lowest level in 50 years and is down by 51 percent since 2006.
The USPS stated on Oct. 6 that “as inflationary pressures on operating expenses continue and the effects of a previously defective pricing model are still being felt, these price adjustments are needed to provide the Postal Service with much needed revenue.”
First-class mail is the highest revenue-generating mail class, accounting for $24.2 billion, or 31 percent, of the $78.8 billion in total USPS revenue in 2022.
In April, the USPS cut projected losses through 2031 by more than half after winning financial relief from the U.S. Congress, instituting regular price hikes, and adopting reforms.
The USPS has been raising stamp prices twice yearly and expects its “new pricing policy to generate $44 billion in additional revenue” by 2031.
