The economy is witnessing another price increase. First it was gas, food and other commodities. Now there has been an increase in postage rates. Postage rate increases began officially on Sunday, July 10.
The increase was mentioned during a Postal Service Board of Governors meeting Thursday, May 5. Louis Dejoy, the 75th Postmaster General of the United States said, “Concerning pricing—the nation as well as the Postal Service are experiencing significantly high rates of inflation in the cost of our operations. While the impact of the Postal Reform Legislation is helpful—this is approximately a $50 billion dollar offset against a projected $160 billion-dollar 10-year projected loss. That said, there is a lot left to do…and while we are working diligently to improve our operating model and cost structure—we still have a long way to go. Therefore, from my perspective, the mailing industry needs to be prepared for continued use of our authority to raise prices on market dominant products at an uncomfortable rate until such time as we have accomplished our objective of projecting a trajectory that shows us becoming self-sustaining—as required by law. While our pricing decisions are ultimately made under the authority of the Board of Governors, in the near term, I will most likely be advocating for these increases. I believe we have been severely damaged by at least 10 years of a defective pricing model—which cannot be satisfied by one or two annual price increases—especially in this inflationary environment.”
It is reported in article number 000004647 on the United States Postal Service (USPS) website that, “On April 6, 2022, the United States Postal Service® filed notice with the Postal Regulatory Commission (PRC) of price changes to take effect July 10, 2022. On June 9, 2022, the PRC announced the approval of changes, which include a two-cent increase in the price of a First-Class Mail Forever stamp from 58 cents to 60 cents. The proposed prices, approved by the Governors of the U.S. Postal Service, would raise First-Class Mail® prices approximately 6.5%, which is lower than the Bureau Labor Statistics annual inflation rate of 7.9% as of the end of February. The price changes reflect a judicious implementation of the Postal Service’s pricing authority provided by the PRC.”
The new First-Class Mail Prices are as follows as described by Stamps.com.
Mailing Letters, Postcards and Flats/Large Envelopes:
The First-Class Mail (1 oz.) letter rate for postage purchased at the Post Office will increase two cents to $0.60 from $0.58.
The “Metered Mail” rate for First Class Mail (1 oz.) letters which includes online postage and postage meters, will increase four cents to $0.57 from $0.53. “Metered Mail” for a First-Class Mail (1 oz.) letter will be three cents cheaper which than the Post Office rate, a savings of 5%.
Additional ounces (Post Office and Metered Mail) for a First-Class Mail letters are increasing by four cents to $0.24 from $0.20.
First Class Mail Flats/Large Envelopes (1 oz.) rates will increase four cents to $1.20 from $1.16. Each additional ounce will cost $0.24.
First Class Mail International (1 oz.) letter rates for postage purchased at the Post Office or online will increase 10 cents to $1.40 from $1.30.
Postcards will increase by four cents to $0.44 from $0.40.
Certified Mail will increase by twenty-five cents to $4.00 from $3.75.
Special services such as Registered Mail, Signature Confirmation and Return Receipt will also increase in July 2022.
Media Mail rates will increase by 9%. Rates will start at $3.49 (previously $3.19).
NEW: Priority Mail will now include $100 of insurance for free (previously $50 of insurance was provided for free).
NEW: Cubic pricing is being introduced for Parcel Select Ground.
“As inflation and increased operating expenses continue, these price adjustments will help with the implementation of the Delivering for America plan, including a $40 billion investment in core Postal Service infrastructure over the next ten years. With the new prices, the Postal Service will continue to provide the lowest letter-mail postage rates in the industrialized world and offer a great value in shipping.
The PRC will review the prices before they are scheduled to take effect. The complete Postal Service price filing with prices for all products can be found on the PRC site under the Daily Listings section at prc.gov/dockets/daily. The Mailing Services filing is Docket No. R2022-1. The price change tables are also available on the Postal Service’s Postal Explorer website at pe.usps.com/PriceChange/Index.
The Postal Service generally receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.”, as stated by USPS article dated April 6, 2022, by USPS media contact David P. Coleman.