the staff of the Ridgewood blog
Ridgewood NJ, the U.S. Postal Service (USPS) raised the price of its postage stamps once again on Sunday July 14th, marking the second price hike in 2024. This increase ties the record for the largest hike ever.
Starting Sunday, the cost of a first-class mail Forever Stamp will rise to 73 cents, a 5-cent (or 7%) increase from its current price of 68 cents. The only other time a 5-cent increase occurred was in January 2019, when the price jumped from 50 to 55 cents.
A History of Recent Increases
- January 2023: Stamps were priced at 63 cents each.
- July 2023: The price increased to 66 cents.
- January 2024: The price rose to 68 cents.
- July 2024: The price will increase to 73 cents.
Reasons Behind the Increase
In April, the USPS announced its proposal for new stamp prices to the Postal Regulatory Commission. The proposal also included raising the mailing price of international postcards and letters from $1.55 to $1.65.
The USPS stated that these new prices are essential for the agency’s financial health, asserting that USPS prices remain among the most affordable worldwide. The adjustments are part of the USPS’s “Delivering for America” 10-year restructuring plan, which aims to eliminate $160 billion in predicted losses.
Financial Challenges
Despite efforts to stabilize its finances, the USPS reported a $6.5 billion net loss for the fiscal year 2023. The fiscal year ended on September 30, 2023, with operating revenue falling by $321 million (or 0.4%) to $78.2 billion compared to the previous year. First-class mail volume dropped to its lowest level since 1968.
The USPS attributed these significant losses to $2.6 billion in inflation costs and a decrease in mail volume.
Other Price Adjustments
- Metered 1-ounce letters: Increasing from 64 cents to 69 cents.
- Domestic postcards: Going up from 53 cents to 56 cents.
- International postcards and 1-ounce letters: Rising from $1.55 to $1.65.
- Additional-ounce price for single-piece letters: Increasing from 24 cents to 28 cents.
No Increase in PO Box Rental Fees
In April, the USPS announced that there would be no increase in post office box rental fees. Additionally, the Postal Service will apply a 10% price reduction for postal insurance when mailing an item.
Public Reaction and Calls for Legislative Action
Beth Dozier, a spokesperson for Keep US Posted, a nonprofit watchdog, expressed concerns over the frequent price hikes. She urged Congress to file legislation to amend the Delivering for America plan and reject the bi-annual stamp increases. Dozier warned that without intervention, the USPS would continue to “hike postage rates twice each year at percentages far above inflation, delay mail, and slip further into financial ruin.”
Conclusion
As the USPS navigates financial challenges and strives to stabilize its operations, the latest price hike reflects ongoing efforts to adapt to changing market conditions. While the increases aim to support the agency’s financial health, they also highlight the need for continued scrutiny and potential legislative action to ensure the long-term viability of the U.S. Postal Service.
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The blog post is dated today, Monday, July 15, and says the price increases will start “on Sunday.” But the press release was probably written last week, because they went into effect yesterday, July 14.