The United States Postal Service has proposed new postage rates which are approved by the Postal Regulatory Commission. The new postage rates will be implemented from 29 Jan 2019. The prices of some mailing services are supposed to rise by 2.5 percent according to a release from USPS.
Details on the new prices:
- 3.9% increase in Priority Mail Express prices.
- 5.9% increase in Priority Mail prices.
- A record increase of 5 cents in the Stamp Prices from $0.50 to $0.55.
- $0.70 increase in the price of a small flat rate box.
- $1.05 increase in the price of a large flat rate box.
- $0.75-$0.80 increase in the price of padded flat rate envelope.
You can find more details about the new prices HERE.
According to the Governors, the new rates will keep Postal Services competitive and are going to provide the necessary revenue to USPS. No price increase will be there for the weekend or holiday delivery. No surcharges are going to be there for residential delivery or fuel. It is worth noting that USPS does not get money from taxes for operating cost. It relies only on products, services, and sale of postages to fund their operations.
If we go by the USPS Fiscal Report 2017 we can see an increase in revenue generated from shipping and packaging services. But on the other hand revenue from First Class Mail, Marketing mail, and from the USPS mail decreased significantly.
Now, for more than a decade the Postal Service is suffering from losses. Recently on 2, Jan 2019 Postal Service reported a financial loss for the consecutive 12th year. Hence, a task force was made to provide recommendations and ideas that will help the USPS in getting out of this tough situation. Overall, this price increase is going to help USPS in getting the money and finances they needed to continue their functioning and services.