In another blow to American consumers, the U.S. Postal Service (USPS) is set to raise the price of postage stamps again this Sunday, marking the second increase in 2024. This hike, tying the record for the largest increase ever, comes as the USPS struggles to stabilize its finances amid falling mail volumes and rising operational costs.
Starting Sunday, the cost of a first-class mail Forever Stamp will jump to 73 cents, a 7% increase from its current price of 68 cents. This marks the second 5-cent increase in recent memory, following a similar hike in January 2019 when prices rose from 50 to 55 cents.
The USPS has been steadily increasing stamp prices over the past few years. In January 2023, the price was 63 cents, rising to 66 cents by July, and then to 68 cents in January 2024. This pattern reflects the agency’s ongoing struggle to address its financial woes.
In April, the USPS announced its proposal for the new stamp prices, which also included raising the cost of mailing international postcards and letters from $1.55 to $1.65. The agency justified these increases as necessary for maintaining financial stability, noting that USPS prices remain “among the most affordable in the world.”
“As changes in the mailing and shipping marketplace continue, these price adjustments are needed to achieve the financial stability sought by the organization’s Delivering for America 10-year plan,” the USPS stated. This plan, unveiled in 2021, aims to eliminate $160 billion in predicted losses over the next decade.
Despite these efforts, the USPS reported a staggering $6.5 billion net loss for fiscal year 2023, far from the break-even target it had hoped to achieve. Operating revenue fell by $321 million, or 0.4%, to $78.2 billion compared to the previous year, with first-class mail volumes plummeting to their lowest level since 1968. The USPS attributed its significant losses to $2.6 billion in inflation costs and the ongoing decline in mail volume.
Other price increases set to take effect this weekend include a rise in the cost of metered 1-ounce letters from 64 cents to 69 cents, domestic postcards from 53 cents to 56 cents, and international postcards and 1-ounce letters jumping 10 cents to $1.65. Additionally, the price for each additional ounce in single-piece letters will increase from 24 cents to 28 cents.
Notably, there will be no increase in post office box rental fees, and the USPS plans to reduce postal insurance costs by 10% for mailing items.
Beth Dozier, spokesperson for the nonprofit watchdog Keep US Posted, criticized the USPS’s approach and called on Congress to intervene. “USPS will continue to hike postage rates twice each year at percentages far above inflation, delay mail, and slip further into financial ruin,” Dozier told Axios, urging legislators to address the flaws in the Delivering for America plan.
As the USPS navigates its financial crisis, American consumers are left to bear the burden of repeated postage hikes. This latest increase is yet another reminder of the challenges facing a once-reliable institution, struggling to adapt to a rapidly changing marketplace while maintaining affordable services for the public.
