U.S. Postal Service Announces New Prices for 2014
The United States Postal Service today announced proposed price changes, including an increase in the price of a First-Class Mail single-piece letter from 46 cents to 49 cents. The proposed changes, which would go into effect in January 2014, are intended to generate $2 billion in incremental annual revenue for the Postal Service.
Highlights of the new single-piece First-Class Mail pricing, effective Jan. 26, 2014 include:
- Letters (1 oz.) - 3-cent increase to 49 cents
- Letters additional ounces - 1-cent increase to 21 cents
- Letters to all international destinations (1 oz.) - $1.15
- Postcards - 1-cent increase to 34 cents
The announcement comes just days after Postmaster General Patrick Donahue requested that Congress approve an emergency rate hike to help the financially struggling service. The post office is expected to lose $6 billion dollars in 2013, down from a $16 billion loss in 2012.
Stamp prices have stayed consistent with the average annual rate of inflation of 4.2 percent since the Postal Service was formed in 1971. Pricing for Standard Mail, Periodicals, Package Services and Extra Services also will be adjusted as part of a filing to the Postal Regulatory Commission (PRC) scheduled to take place today, Sept. 26.
The Governors of the Postal Service voted Sept. 24 to seek price increases above the typical annual increases associated with changes in the Consumer Price Index (CPI).
In a letter disseminated to customers today, Board of Governors Chairman Mickey Barnett described the "precarious financial condition" of the Postal Service and the "uncertain path toward enactment of postal reform legislation" as primary reasons for seeking price changes above the CPI increase. He also indicated that the price adjustment above the CPI increase is necessary in order to ensure that the Postal Service will be able to maintain and continue the development of postal services of the type and quality which America needs.