October 12, 2012 in Nation/World

Post office raising first-class mail cost one cent

Agency will also roll out $1.10 global ‘forever’ stamp
Hope Yen Associated Press
 

WASHINGTON – It’ll cost another penny to mail a letter next year.

The cash-strapped U.S. Postal Service said Thursday that it will raise postage rates on Jan. 27, including a 1-cent increase in the cost of first-class mail to 46 cents.

It also will introduce a new global “forever” stamp, allowing customers to mail first-class letters anywhere in the world for one set price of $1.10. Currently, the prices vary depending on the international destination, with letters to Canada and Mexico costing 85 cents.

Under the law, the post office cannot raise stamp prices more than the rate of inflation, or 2.6 percent, unless it gets special permission. The post office, which expects to lose a record $15 billion this year, has asked Congress to give it new authority to raise prices by 5 cents, but lawmakers have failed to act.

The mail agency also will increase rates on its shipping services, such as priority mail, by an average of 4 percent.

The post office, which is struggling with debt and low cash flow, said the rate hikes were partly aimed at bringing in new revenue while maintaining its pricing advantage in the shipping business. Private companies such as UPS and FedEx, which offer similar shipping services, regularly adjust their prices.

The post office lost $5.1 billion in fiscal 2011, mostly due to a 5.8 percent decline in revenue for first-class mail. Financial results are expected to be even worse when final figures for fiscal 2012 are released next month.

Other price increases:

• Postcards will go up one penny to 33 cents.

• Priority mail, small box, $5.80; medium box, $12.35; large box, $16.85.

• Priority mail, regular envelope, $5.60; legal envelope, $5.75; padded envelope, $5.95.

• Delivery confirmation will be free on packages, including priority mail and parcel post, rather than being an extra charge.

The Postal Service, an independent agency of government, does not receive tax money for its day-to-day operation but is subject to congressional control.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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