The United States Postal Service (USPS) recently announced that it will increase the price of postage on regular mail by five times by the year 2027. This move is in response to deteriorating profits and pressure from inflation, with the aim of improving profitability through price hikes.
On Monday, September 23, the USPS submitted its pricing plan to the Postal Regulatory Commission (PRC), an independent federal agency that oversees postal services. All price changes require approval from the commission.
The price increase is set to begin in July 2025, with subsequent increases every January and July until the end of 2027. This means that the price of a Forever stamp for First-Class Mail may potentially increase fivefold from the current 73 cents within the next three years.
The agency stated that these adjustments are necessary to fulfill its legal obligation of being financially self-sustaining.
Prior to this, customers need not worry about immediate price hikes. Last Friday, September 20, the USPS announced that there will be no price increases until January 2025, based on a recommendation by Postmaster General Louis DeJoy.
DeJoy mentioned in a statement: “Our strategy is working, and we anticipate the rate of inflation to decline. Therefore, we will wait until at least July to propose any increase in market-dominant service prices.”
The USPS also noted that they will continue to focus on implementing ongoing cost-saving measures and ensuring the affordability of products and services.
The statement highlighted that the USPS is an independent federal agency that must cover its costs and deliver mail and packages to 167 million addresses in a sustainable, reliable, and secure manner six days a week, serving every American community.
Furthermore, the USPS is in the process of implementing a 10-year transformational plan called “Delivering for America” to reduce costs, increase revenue, and enhance services.
The last postage price hike occurred in July of this year, when the price of a First-Class stamp increased from 68 cents to 73 cents. Prior to that, the price had risen from 66 cents in January 2024 to 68 cents.
According to USPS data, postal rates have steadily increased in recent years, with a 46% increase in stamp prices since early 2019, when the price was 50 cents.
(This article referenced relevant reports from “The Hill.”)