USPS Prices Rising Dramatically on Sunday: A Detailed Analysis
Inflation hit everything, and the USPS was no exception: the value of a First-Class Forever stamp in 2019 was 50¢; five years on, it’s poised to break the 70-cent barrier, rising by just over eight per cent over half a decade. As of January 2024, the price of a Forever stamp was 68 cents and the next increase goes into effect on Sunday, 14 July.
Recent and Upcoming Price Adjustments
They include increasing the cost of a single First-Class Forever stamp (burned into my binder inside the front cover) and ‘forever’ sheet and booklet stamps by two cents (effective in January this year), and thematic stamps – available seasonally, depending on what’s in stock at the local post office – usually tied to holidays.
Despite that January boost, another price increase has been announced. On Sunday, 14 July, the price of a Forever stamp will rise to 73 cents – a five-cent increase from the last boost, and an annual seven-cent rise overall.
Broader Price Increases
With the postal rate increase, you’ll be paying more than just postage – metred one-ounce letters will go up to 69 cents, from 64 cents; domestic postcards will increase to 56 cents, from 53 cents; international postcards will receive a 10-cent price hike to $1.65 apiece; and Special Services products, such as Certified Mail and money orders, will also see increases, while P.O. box rental fees are staying the same.
Rationale Behind the Increases
These changes are part of a larger effort by the USPS towards a 10-year plan to get its finances on stable footing under what it calls its ‘Delivering for America 10-year plan’. Despite the increases, the USPS keeps prices among the most inexpensive around the world. ‘These increases help ensure the organization remains financially viable to continue our package and mail delivery for the nation,’ read a USPS press release.
Historical Context and Future Implications
This is the biggest hike under Postmaster General Louis DeJoy, confirming the suspicions of naysayers that aggressively raising postage prices was the United States Postal Service’s plan all along. Among USPS price increases, which only occur every five years or so, this one is out of the ordinary: it puts the stamp price off by a whole nickel, rather than the usual two or three cents.
Since DeJoy’s appointment, the USPS has undergone several (and often controversial) transformations to realise the goals of the Delivering for America plan, a blueprint to bring ‘the USPS in from the financial and operational brink of collapse,’ in the words of its sponsors.
Impact on Consumers and Businesses
These price rise will affect both consumers and businesses.
In order for consumers, they will have to pay more for postal services while sending letters and postcards. This might influence to change the frequency of using the postal services.
Moreover for businesses which are mostly reliant the use of mailing services, these increases will make their operational more costly.
However, as the USPS points out, all of these changes are portrayed as necessary to maintain service quality and USPS financial health; in other words, they are sold as necessary steps the USPS needs to take in order to continue to function effectively in this difficult economic environment.
Conclusion
However, consumers and businesses might be in for a rude shock due to USPS’s new round of price increases that is set to go live on Saturday. While the USPS tries to balance its books, consumers will need to factor in higher costs for postal services that form part of many people’s daily routines. The service will go on through the postal maelstrom.