Postal Rate Hike Approved

FOREVER STAMPThe price of a Forever stamp and other mail will rise by 3 cents on January 26, 2014.  This represents the largest rate hike in 11 years.  The increase will be in effect for two years, giving the USPS a temporary shot of extra revenue.  “Allowing the rates to remain in effect indefinitely would result in over recovery of the financial impact of the Great Recession on the Postal Service,” wrote the commission.

The PRC (Postal Rate Commission) approved the exigent increase by a 2 to 1 vote, resulting in a 6% overall jump in postal rates.  This is the first extra revenue for the USPS since the 2006 law limited rate increases to the rate of inflation.

In addition to First-Class mail, the higher rates will apply to magazines, newspapers, advertising mail and bills – which together account for most of the 158 billion pieces of mail delivered every year.

 

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