**Rising Stamp Prices and Other Changes at the U.S. Postal Service**
**Stamp Prices Increase Again**
The U.S. Postal Service (USPS) has announced several changes that will be rolling out this month, including an increase in stamp prices. Effective Sunday, the cost of first-class “forever” stamps will jump from 63 cents to 66 cents. This price hike comes just a few months after the stamps rose from 60 to 63 cents in January, following several similar increases in recent years.
**Reasons for the Price Increase**
The USPS attributed the price increase to rising operating expenses fueled by inflation and the impact of a previously defective pricing model. The Postal Service stated that these changes in mail service costs were necessary to generate much-needed revenue.
**Other Mail Service Price Increases**
In addition to forever stamps, the cost of other mail services will also see price increases starting this month. Sending a first-class one-ounce metered letter will rise to 63 cents, while domestic postcards will jump to 51 cents. International postcards and one-ounce letters will both be priced at $1.50.
**Introduction of USPS Ground Advantage**
The USPS will also be launching a new package shipping service called USPS Ground Advantage. This service will replace and combine previous plans. The pricing for Ground Advantage reflects a 3.2% decline in retail prices and a 0.7% drop for commercial shipping, as stated by the Postal Service.
**Approval of Price Changes and Ground Advantage Implementation**
Both the price changes and the implementation of Ground Advantage were approved by the Postal Regulatory Commission and the Governors of the U.S. Postal Service. These changes have been in the works since April and are now set to take effect.
**Frequent Jump in Stamp Prices**
This increase in stamp prices marks the fifth jump in forever stamp prices since the start of 2019. In January 2019, the postage cost 50 cents per stamp. When adjusted for inflation, this amount is equivalent to about 60 cents in the spring of 2023, according to the Bureau of Labor Statistics’ CPI inflation calculator.
**Postal Service Financial Performance**
During the first quarter of 2023, the USPS reported operating revenue of $21.5 billion. This revenue represents an increase of $206 million, despite a decline in volume by 1.7 billion pieces, or 4.8%, compared to the same period last year. Although the Postal Service reported a net loss of $1 billion for the first quarter, it is an improvement of $519 million compared to the $1.5 billion net loss in the same period last year.
In summary, the U.S. Postal Service is implementing changes this month, including an increase in forever stamp prices and the introduction of the USPS Ground Advantage package shipping service. These changes are aimed at addressing rising operating expenses and generating revenue for the Postal Service. While stamp prices have experienced frequent increases in recent years, the USPS has also reported an increase in operating revenue despite a decline in mail volume.
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