Breaking News: USPS to Hold Off on Stamp Price Hike in January for First Time Since 2022 - What Does This Mean for Your Finances?
By David Shepardson
In a surprising move, the U.S. Postal Service has announced that it will not be increasing stamp prices in January for the first time since 2022. This decision comes after a series of price hikes in recent years, with the most recent increase happening in July when the price of a first-class mail stamp was raised to 73 cents from 68 cents.
Stamp prices have seen a significant 36% increase since early 2019 when they were just 50 cents. Despite this, Postmaster General Louis DeJoy stated that their strategies are working and projected inflation is on the decline. As a result, they will hold off on proposing any increases for market dominant services until at least July.
The USPS reported a $6.5 billion yearly net loss in November, with first-class mail volume dropping to its lowest level since 1968. However, they are in the midst of a 10-year restructuring plan aimed at eliminating $160 billion in predicted losses over the next decade. DeJoy also mentioned that they are working on driving transportation costs down and expect their new pricing policy to generate an additional $44 billion in revenue by 2031.
First-class mail remains the highest revenue-generating mail class for USPS, accounting for $24.5 billion or 31% of their 2023 revenue. President Joe Biden signed legislation in 2022 providing USPS with $50 billion in financial relief over a decade, and DeJoy agreed to pause further consolidation of the processing network until at least January.
Overall, this news could have a significant impact on your finances, especially if you frequently use the postal service to send letters and pay bills. With stamp prices on hold for now, it may provide some relief for consumers. However, keep an eye on future developments as USPS continues its restructuring efforts to stay afloat financially.