The United States Postal Service proposes a fivefold increase in stamp prices within a three-year span.
The U.S. Postal Service has declared that the cost of First-Class mail, which is currently set at 73 cents, is set to increase five times by 2027, as per a report submitted to the Postal Regulatory Commission this week.
The first price increase is scheduled for July 2025 and will then occur every January and July thereafter until 2027, the agency revealed. However, these specific price increments await approval from the Postal Regulatory Commission.
The Postal Service assured that it won't raise prices in January 2025, despite the new bi-annual hike schedule, marking a temporary halt.
In a statement, Postmaster General Louis DeJoy asserted, "Our methods are proving successful, and projected inflation is on a downward trend." Consequently, he added, "We'll postpone proposing any price increases for market-dominant services until at least July."
Furthermore, the Postal Service affirmed its intention to continue implementing cost-saving measures and to maintain its services and products at affordable prices. It also pointed out that only a few nations charge less for postage than the U.S. does.
The cost of a First-Class stamp rose to 10 cents in 1974, nearing the 200th anniversary of the service. As recently as 2002, it stood at 34 cents, which is half of its current price.
The share of First-Class mail in the Postal Service's overall business is diminishing due to the rise of digital communication. In the last decade, the annual number of individual letters dispatched has dropped by approximately half.
The proposed price increases for First-Class mail are part of the Postal Service's business strategy to cover its costs, as mentioned in the report. Despite the planned increments, Postmaster General Louis DeJoy announced a temporary halt in price increases for market-dominant services.
