U.S. Postal Service increases stamp prices

2011-01-15 06:28:26 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- The U.S. Postal Service on Thursday announced its first price change in two years, but noted that it will have minimal impact on retail customers who will continue to pay only 44 cents for a stamp.

The prices filed with the Postal Regulatory Commission will become effective April 17, and while First-Class letters (1 oz.) remain unchanged at 44 cents, the cost for additional ounces will increase to 20 cents.

Other important changes include postcards costing 29 cents, letters to Canada or Mexico (1 oz.) increasing to 80 cents, while letters to other international destinations will remain unchanged at 98 cents.

"While changing prices is always a difficult decision, we have made every effort to keep the impact minimal for consumers and customers doing business with us at retail lobbies," said Postmaster General Patrick R. Donahoe. "We will continue to balance our business needs against the needs of our customers."

The overall average increase across all mailing services is capped by law at 1.7 percent – at or below the rate of inflation as measured by the Consumer Price Index – although actual percentage price increases for various products and services will vary.

Prices will change for other mailing services, including Standard Mail, Periodicals, Package Services and Extra Services. Larger volume business mailers will see price increases in a variety of categories.

With the U.S. Postal Service receiving no tax dollars for operating expenses, it relies on the sale of postage, products and services to fund its operations. Faced with decreased mail volume traced to the recession and increased use of the Internet, the Postal Service continues to face a daunting financial crisis.

Increasing prices is one of a series of solutions the U.S. Postal Service proposed in March 2010 to address the crisis. Other actions outlined in the March plan included changes to delivery frequency, restructuring prepayments of future retiree health benefits, creating a more flexible workforce and expanding access to products and services to places more convenient to customers.

-- © BNO News All rights reserved 2011-01-15

"Only" 44 cents. I've been gone for a long time.