Price of First-Class Stamp Falls Two Cents as U.S. Postal Service Lowers Rates
Posted on April 11, 2016
It is cheaper to purchase stamps this week than it was last week. The price of a first-class stamp has fallen two cents from 49 cents to 47 cents. The price to mail a postcard has fallen from 35 cents to 34 cents.This is the first price drop from USPS in 100 years according to USA Today. It was July 1919 the last time the cost to mail a letter went down. The U.S. Postal Service did not want to lower rates. USPS was ordered to reduce its rates by the Postal Regulatory Commission. The commission is is an independent federal agency that provides transparency and accountability of the U. S. Postal Service's operations.
The Postal Service says the rate reduction will cost them $2 billion. CNN reports that Postmaster General Megan Brennan has filed a petition against the stamp price drop.
Brennan says in a statement, "Given our precarious financial condition and ongoing business needs, the price reduction...exacerbates our losses. This unfortunate decision heightens the importance of the review of our ratemaking system."
USPS was allowed to boost stamp prices 3 cents in 2014 to counteract a shortfall caused by the Great Recession. Now they are being made to reverse part of that increase which was only meant to be temporary.
Other rate changes with the mandated reduction include a drop for additional ounces on letter from 22 cents to 21 cents. Letters to international destinations fall from $1.20 to $1.15. Enjoy the reduced prices while the last. There is no doubt the Postal Service will raise prices again as soon as they are allowed to do so.