Beginning Jan. 26, when you visit the Post Office to buy a stamp, be sure to have a few more pennies in your pocket.
The United States Postal Service has announced price changes, including an increase in the price of a First-Class Mail single-piece letter from 46 cents to 49 cents. The changes are intended to generate 2 billion dollars in incremental annual revenue for the Postal Service.
The new single-piece First-Class Mail pricing includes letters that are 1 oz. being increased 3 cents. Letters of additional ounces will increase 1 cent to become 21 cents. Letters to all international destinations that are 1 oz will become $1.15 and postcards will increase by 1 cent to become 34 cents.
Stamp prices have remained consistent with the average annual rate of inflation of 4.2 percent since the Postal Service was formed in 1971. Pricing for Standard Mail, Periodicals, Package Services and Extra Services also was adjusted as part of a filing to the Postal Regulatory Commission (PRC) on or around Sept. 26, 2013.
The Governors of the Postal Service voted Sept. 24, 2013 to seek price increases above the typical annual increases associated with changes in the Consumer Price Index (CPI). Increasing postage prices is a last resort that reflects extreme financial challenges.
It was indicated that the price adjustment above the CPI increase is necessary in order to ensure the Postal Service will be able to maintain and continue the development of postal services of the type and quality which America needs.
Except in exceptional or extraordinary circumstances, postage price increases are capped at the rate of inflation as measured by the CPI-U. The Postal Service is filing a price increase above CPI-U due to extraordinary and exceptional circumstances which have contributed to continued financial losses. The Postal Service recorded a $15.9 billion net loss last fiscal year and expects to record a loss of roughly $6 billion in the current fiscal year, and has an intolerably low level of available liquidity even after defaulting on its obligation to make prefunding payments for retiree health benefits.
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.
