The Postal Service increases the price of postage stamps

The United States Postal Service (USPS) increased the price of stamps last Sunday. As a response to control the effects of high inflation, the individual cost increased from 63 to 66 cents on the dollar. The increase had been announced in April in a statement which emphasized that the reason for the increase was to achieve financial stability.

"As operating expenses fueled by inflation continue to rise and the effects of a previously defective pricing model are still being felt, these price adjustments are needed to provide the Postal Service with much needed revenue to achieve the financial stability sought by its Delivering for America 10-year plan," the USPS said in the April message.

In addition, the price for sending a metered 1-ounce letter went from 60 to 63 cents, while the price for sending postcards rose from 48 to 51 cents. The cost of sending both postcards and international letters increased from US$1.45 to US$1.50 per unit.

Starting in 2019, and as part of an effort to increase revenue due to declining overall mail volume, the USPS raised stamp prices by 32 %. For example, in 2022, the volume fell to its lowest level in 50 years, and since 2006 it has decreased by 50%.

As for the financial situation of the federal agency, it has been registering net losses of more than 90 billion since 2007. As reported by Fox News, Joe Biden signed a bill that guaranteed some $50 billion to the USPS as part of financial relief over the next decade.

In addition, Congress forgave the Postal Service a $10 billion Covid-19 loan made in 2020, in addition to granting it $3 billion last year to fund the purchase of electric vehicles and charging infrastructure.