US Postage Rate Increase Explained: Changes and Costs

The US Postal Service has announced a new postage rate increase, and it's essential to understand the changes and costs involved. The rate hike will affect various mail services, including first-class mail, packages, and periodicals.

The new rates will be implemented on January 26, 2024, and the USPS will be increasing the price of a first-class stamp by 6.1% from $0.60 to $0.64. This means that sending a letter weighing up to 1 ounce will now cost 4 cents more.

The rate increase is due in part to inflation and the rising cost of fuel and other expenses. The USPS has been facing financial challenges in recent years, and this rate hike is an effort to help the agency stay afloat.

The postage rate increase is a significant change that affects many people who use the mail. The U.S. Postal Service has filed a notice to raise the cost of a Forever Stamp from 73 cents to 78 cents, effective July 13.

This is the second price hike for Forever Stamps in a year, and it comes after a 2-cent increase from 66 cents to 68 cents in January 2024. The price of a Forever Stamp has risen significantly since it was introduced at 55 cents in 2019.

The new rate of 78 cents for a Forever Stamp is a 5-cent increase, which is the largest price hike in recent years. This change affects not only Forever Stamps but also other mail services, including letters, postcards, and international mail.

The price of Letters (metered 1 ounce) is increasing from 69 cents to 74 cents, while Domestic Postcards will cost 62 cents instead of 56 cents. International postcards will cost $1.70 instead of $1.65, and International Letters (1 ounce) will also cost $1.70 instead of $1.65.

Here are the specific price increases that took effect on July 14:

The U.S. Postal Service claims that these price increases are necessary to achieve financial stability and meet the goals of its 10-year Delivering for America plan. However, critics argue that the plan has led to delays in mail delivery and that upping the price of Forever Stamps and other mail services won't solve the agency's financial challenges.

The Postal Service has been facing significant financial challenges, and this has led to price increases for Forever stamps and other mail services.

The Postal Service's 10-year plan, Delivering for America, was enacted in 2021 with the goal of becoming fiscally self-sufficient.

Despite some improvements, the plan has led to delays in mail delivery, and the agency is now expected to lose more than $8 billion in the fiscal year ending September 30.

Domestic first-class mail has declined by 52% compared to 2007, a big problem for the Postal Service.

The agency has asked the White House for an additional $14 billion to help address its financial challenges.

The Postal Service is one of the most efficient postal administrations in the world, but it's struggling to adapt to a decline in mail volume due to digital communications and online transactions.

Forever Stamps have been a game-changer for mailing costs, but their prices have increased significantly over time. In 2007, they cost 41 cents.

The postal service first introduced Forever Stamps in April 2007 to make the transition from one stamp cost to the next smoother. The stamp has no expiration date.

The price of Forever Stamps is set to increase to 78 cents, a whopping 90.24% increase in just 18 years. This means that if you bought Forever Stamps in 2007, you'd be paying nearly double the price now.

Priority mail rates have also changed, with some decreases and increases. For example, rates for priority mail dropped by 5.7% in January.

The price increase for Forever stamps is no surprise, given the Postal Service's financial struggles. The agency has been in a financial death spiral for 14 years, with no plan to become fiscally self-sufficient.

The Delivering for America 10-year plan, enacted in 2021, aims to achieve financial stability, but it's clear that price increases won't solve the agency's problems. The plan was forecast to result in a $1.7 billion surplus in 2024, but instead, the Postal Service is expected to lose more than $8 billion in the fiscal year ending September 30.

The decline of domestic first-class mail is a significant issue, with a 52% decrease compared to 2007. This is largely due to the rise of digital communications and online transactions.

The price of a Forever Stamp has increased multiple times in recent years, from 55 cents in 2019 to 78 cents in 2024, with a 5-cent increase in July 2024. Here's a breakdown of the price increases:

The Postal Service's financial struggles are a complex issue, but one thing is clear: the price of Forever stamps will continue to rise as the agency tries to stay afloat.

The U.S. Postal Service is seeking a rate increase, which includes hiking the cost of a first-class stamp from 73 cents to 78 cents.

The proposed increase was made to the Postal Regulatory Commission, which must approve the proposal. If approved, the new rates would take effect on July 13.

A 5-cent increase is also being proposed for "forever" stamps and similar increases for postcards, metered letters, and international mail.

The Postal Service claims the price hike is necessary to achieve financial stability.