Mailing a letter is about to get a little more expensive.
Regulators on Tuesday approved a temporary price hike of 3 cents for a first-class stamp, bringing the charge to 49 cents a letter in an effort to help the Postal Service recover from severe mail decreases brought on by the 2008 economic downturn.
Many consumers won’t feel the price increase immediately. Forever stamps, good for first-class postage whatever the future rate, can be purchased at the lower price until the new rate is effective Jan. 26.
The higher rate will last no more than two years, allowing the Postal Service to recoup $2.8 billion in losses. By a 2-1 vote, the independent Postal Regulatory Commission rejected a request to make the price hike permanent, though inflation over the next 24 months may make it so.
The surcharge “will last just long enough to recover the loss,” Commission Chairman Ruth Y. Goldway said.
Bulk mail, periodicals and package service rates will rise 6 percent, a decision that drew immediate consternation from the mail industry. Its groups have opposed any price increase beyond the current 1.7 percent rate of inflation, saying charities using mass mailings and bookstores competing with online retailer Amazon would be among those who suffer. Greeting card companies also have criticized the plans.
“This is a counterproductive decision,” said Mary G. Berner, president of the Association of Magazine Media. “It will drive more customers away from using the Postal Service and will have ripple effects through our economy — hurting consumers, forcing layoffs and impacting businesses.”
Berner said her organization will consider appealing the decision before the U.S. Court of Appeals.
For consumers who have cut back on their use of mail for correspondence, the rate increase may have little impact on their pocketbooks.
“I don’t know a whole lot of people who truly, with the exception of packages, really use snail mail anymore,” said Kristin Johnson, a Green Bay, Wis., resident who was shopping in downtown Anchorage, Alaska, while visiting relatives and friends. “It’s just so rare that I actually mail anything at this point.”
The Postal Service is an independent agency that does not depend on tax money for its operations but is subject to congressional control. Under federal law, it can’t raise prices more than the rate of inflation without approval from the commission.
The service says it lost $5 billion in the last fiscal year and has been trying to get Congress to pass legislation to help with its financial woes, including an end to Saturday mail delivery and reduced payments on retiree health benefits.
The figures through Sept. 30 were actually an improvement for the agency from a $15.9 billion loss in 2012.
The post office has struggled for years with declining mail volume as a result of growing Internet use and a 2006 congressional requirement that it make annual $5.6 billion payments to cover expected health care costs for future retirees. It has defaulted on three of those payments.
The regulators Tuesday stopped short of making the price increases permanent, saying the Postal Service had conflated losses it suffered as a result of Internet competition with business lost because of the Great Recession. They ordered the agency to develop a plan to phase out the higher rates once the lost revenue is recouped.
It’s unclear where that would take rates for first-class postage in 2016. The regular, inflation-adjusted price would have been 47 cents next year. If inflation rates average 2 percent over the next two years, regulators could deem 49 cents an acceptable price going forward.
The Postal Service has only twice lowered the price of a stamp: in the mid-19th century from 3 cents to 2 cents, and again after the end of World War I. In neither case was the higher price the result of a temporary authorization.
The new price of a postcard stamp, raised by a penny to 34 cents in November, also is effective next month.
The last price increase for stamps was in January, when the cost of sending a letter rose by a penny to 46 cents. A postcard also increased by 1 cent to 33 cents.
Temporary hike of 3 cents OK’d, making cost 49 cents a letter
Mailing a letter is about to get a little more expensive.
- Headline News
Labor Department cuts levels of allowable coal dust
The Obama administration said Wednesday it is cutting the amount of coal dust allowed in coal mines in an effort to help reduce black lung disease.
“Today we advance a very basic principle: you shouldn’t have to sacrifice your life for your livelihood,” Labor Secretary Thomas E. Perez said.
Obama offers Japan security, economic assurances
Facing fresh questions about his commitment to Asia, President Barack Obama will seek to convince Japan’s leaders Thursday that he can deliver on his security and economic pledges, even as the crisis in Ukraine demands U.S. attention and resources elsewhere.
Supreme Court: Michigan affirmative action ban OK
A state’s voters are free to outlaw the use of race as a factor in college admissions, the Supreme Court ruled Tuesday in a blow to affirmative action that also laid bare tensions among the justices about a continuing need for programs that address racial inequality in America.
Court critical of law punishing campaign lies
The Supreme Court appears to be highly skeptical of laws that try to police false statements during political campaigns, raising doubts about the viability of such laws in more than 15 states.
U.S.: Russia has ‘days, not weeks’ to follow by an international accord for Ukraine
Russia has “days, not weeks” to abide by an international accord aimed at stemming the crisis in Ukraine, the top U.S. diplomat in Kiev warned Monday as Vice President Joe Biden launched a high-profile show of support for the pro-Western Ukrainian government. Russia in turn accused authorities in Kiev of flagrantly violating the pact and declared their actions would not stand.
U.S. weighing military exercises
The United States is considering deploying about 150 soldiers for military exercises to begin in Poland and Estonia in the next few weeks, a Western official said Saturday. The exercises would follow Russia’s buildup of forces near its border with Ukraine and its annexation last month of Ukraine’s Crimean Peninsula.
Ukraine, Russia trade blame for shootout
Within hours of an Easter morning shootout at a checkpoint manned by pro-Russia insurgents in eastern Ukraine, Russia’s Foreign Ministry issued a statement blaming militant Ukrainian nationalists and Russian state television stations aired pictures of supposed proof of their involvement in the attack that left at least three people dead.
Governor: Closing Boston amid bomber hunt ‘tough’
Several days after the Boston Marathon bombing, Gov. Deval Patrick received a call in the pre-dawn hours from a top aide telling him that police officers outside the city had just engaged in a ferocious gun battle with the two men suspected of setting the bombs and that one was dead and the other had fled.
Everest avalanche reminder of risks Sherpas face
The rescuers moved quickly, just minutes after the first block of ice tore loose from Mount Everest and started an avalanche that roared down the mountain, ripping through teams of guides hauling gear.
But they couldn’t get there quickly enough.
Colorado deaths stoke worries about pot edibles
A college student eats more than the recommended dose of a marijuana-laced cookie and jumps to his death from a hotel balcony. A husband with no history of violence is accused of shooting his wife in the head, possibly after eating pot-infused candy.
- More Headline News Headlines
- Labor Department cuts levels of allowable coal dust