NewsJanuary 24 2019

First-class postage increases by 5 cents

Posted by Lucy

First-class postage increases by 5 cents 
The New Year has arrived and with it comes a 10 percent increase in the price of a first-class postage stamp. The price of a first-class forever stamp will increase from 50 cents to 55 cents on Sunday, January 27 – the biggest price increase by total cents in the history of the post office. The largest percentage price increase occurred in 1991 when the cost of a stamp went from 25 cents to 29 cents. The postage price increase is an effort by the United States Postal Services (USPS) to offset record operating losses in 2018 totaling nearly $4 billion, due to a volume decline in 2018 of 3.2 billion pieces. A 3.6 percent decline in first-class mail, which provides its most significant share of income, was recorded. Approved by the Postal Regulatory Commission, the January increase in first-class postage accompanies mail and package rate increases across the board for the USPS – an effort to keep the post office “competitive while providing the agency with needed revenue,” officials said. The new rates will increase mailing service product prices approximately 2.5 percent overall. Shipping services price increases vary by product. For example, priority mail express will increase 3.9 percent and priority mail will increase 5.9 percent. Although mailing services price increases are based on the Consumer Price Index (CPI), shipping services prices are primarily adjusted according to market conditions. The new prices will include a 5-cent increase in the price of a first-class forever stamp, from 50 cents to 55 cents. The single-piece additional ounce price will be reduced from 21 cents down to 15 cents, so a 2-ounce stamped letter, such as a typical wedding invitation, will cost less to mail, decreasing from 71 cents to 70 cents. The post office, which “receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations,” touts the fact that it “has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping.” The USPS has not been profitable in a decade. Other USPS 2019 postal price increases taking effect January 27: Small flat rate box from $7.20 to $7.90 Medium flat rate box from $13.65 to $14.35 Large flat rate box from $18.90 to $19.95. Regular flat rate envelope from $6.70 to $7.35 Large flat rate envelope from $7 to $7.65 Padded flat rate envelope from $7.25 to $8

Theme by Xen