USPS Just Announced Its Next Price Hike, and It’s Happening Soon
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The U.S. Postal Service (USPS) is in the midst of a major overhaul—and it’s not a short one. When Postmaster General Louis DeJoy took over three years ago, he vowed to pull the agency out of financial ruin and make it profitable again. In order to do so, DeJoy kickstarted his 10-year transformation plan called Delivering for America (DFA) in 2021, and has been steadily making regular changes to the USPS as part of the initiative. For customers, one of the most noticeable has been rising costs, and unfortunately, there’s another update on the horizon. Read on to discover more about the next USPS price hike.
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Since the introduction of DFA, the USPS has continued to ramp up costs for customers. The price changes began in Aug. 2021, when the agency first raised the price of a Forever stamp from 55 to 58 cents. The cost then went up to 60 cents in July 2022, and then to 63 cents at the beginning of this year.
The most recent price hike hit over the summer: On July 9, the Postal Service increased the cost of the Forever stamp from 63 cents to 66 cents. And now, the USPS is preparing to raise that number again.
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The Postal Service is looking to push up mail costs again, in the fifth rate increase since the start of DFA. In an Oct. 6 press release , the agency announced that it had filed notice with the Postage Regulatory Commission (PRC) of its next proposed price hike. According to the release, the USPS is planning to raise mailing service product prices by approximately 2 percent.
“As inflationary pressures on operating expenses continue and the effects of a previously defective pricing model are still being felt, these price adjustments are needed to provide the Postal Service with much needed revenue to achieve the financial stability sought by its Delivering for America 10-year plan,” the agency stated. “The prices of the Postal Service remain among the most affordable in the world.”
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The USPS wants to implement its new price hike at the beginning of next year. If favorably approved by the PRC—as the agency’s last four increases were—the higher costs for customers would take effect starting Jan. 21, 2024.
“The new rates include a 2-cent increase in the price of a First-Class Mail Forever stamp, from 66 cents to 68 cents,” the Postal Service said in its release.
A stamp won’t be the only thing you’ll have to pay more for, however. The price changes also include the increase of metered 1-ounce letters from 63 cents to 64 cents; domestic postcards from 51 cents to 53 cents; international postcards from $1.50 to $1.55; and 1-ounce international letters from $1.50 to $1.55.
“There will be no change to the additional-ounce price, which remains at 24 cents,” the USPS stated in its release. “The Postal Service is also seeking price adjustments for Special Services products including Certified Mail, Post Office Box rental fees, money order fees and the cost to purchase insurance when mailing an item.”
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Don’t expect this to be the last time the cost of your mail goes up in the next few years. The USPS said it has been working to take a “more rational pricing approach” since the introduction of its DFA plan in order to correct “16 years of pricing policies misaligned with organizational needs.”
During a 2022 meeting with the USPS Board of Governors, DeJoy told members that customers should be prepared for the Postal Service to keep raising prices “at an uncomfortable rate” until the agency reaches a point where it is on track to be self-sufficient in the long term, Federal News Network reported at the time.
“I believe we have been severely damaged by at least 10 years of a defective pricing model, which cannot be satisfied by one or two annual price increases, especially in this inflationary environment,” the Postmaster General said.
According to the agency’s website , you should expect rate adjustments twice every year—once in January and again in July.
- Source: https://about.usps.com/newsroom/national-releases/2021/0528-usps-proceeds-with-request-for-postal-rate-change.htm
- Source: https://about.usps.com/newsroom/national-releases/2023/0410-usps-files-notice-with-prc-for-new-mailing-services-pricing.htm
- Source: https://about.usps.com/newsroom/national-releases/2023/1006-usps-proposes-new-prices-for-2024.htm
- Source: https://about.usps.com/newsroom/statements/091521-new-market-dominant-price-adjustment-schedule.htm
USPS Is Axing Its Next Price Hike, Postmaster General Says
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Price hikes aren’t abnormal for the U.S. Postal Service (USPS). In July, the price of the Forever Stamp went from 63 centers to 66 cents, having just been upped from 60 to 63 cents in January. These increases are part of the Postal Service’s 10-year Delivering for America (DFA) plan, with Postmaster General Louis DeJoy telling Americans in 2022 that prices would keep going up at an “ uncomfortable ” rate. Now, DeJoy appears to be changing his tune a bit, as the USPS is axing its next price hike. Read on to find out why the Postal Service is scrapping its holiday surcharge.
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The holiday season is a hectic time for everyone, but the USPS is particularly busy. Over the past few years, the Postal Service was not only tasked with delivering gifts and packages, but it also faced higher year-end costs due to staffing shortages tied to the COVID pandemic, Federal News Network reported.
To combat this, the agency added a holiday surcharge during the peak season—much like those added by FedEx and UPS. According to Retail Dive, these surcharges date back to 2020 .
“Prior to me being here, we never had an incremental charge,” DeJoy said on Tuesday, per Federal News Network. “We put it in, because in my experience in the commercial business, when you have to do such exponential, extra work, you should, in fact, charge for it—and we did.”
However, this policy is changing in 2023.
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According to a Sept. 19 press release from the USPS, the Postal Service is nixing plans to add the holiday surcharge this year. This means that when it’s time to mail out gifts, you won’t be paying extra for residential area delivery, Saturday delivery, or for minimum volumes, the agency said.
“We are ready to handle any peak season volume in a superior and routine manner,” DeJoy said Tuesday, per Retail Dive. “That is why we will not be adding any additional surcharges for our customers this peak period. We will continue to be the most affordable way to mail and ship during the holiday season.”
In the release, the agency added that the decision not to levy additional charges creates “increased predictability in pricing for customers.”
According to Retail Dive, both FedEx and UPS will still be adding peak season surcharges starting next month.
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DeJoy said that the USPS is able to skip the surcharge because it made improvements in other areas, Federal News Network reported.
“We’ve made a lot of operational improvements that eliminated some of the extra activities that we had when I first got here,” DeJoy said.
Specific improvements include offering better pay and benefits to career workers, Federal News Network reported—and over the holidays, the USPS will also hire fewer seasonal employees and rely instead on its career workforce. In 2022, roughly 20,000 seasonal workers were hired, but this year, that number will be cut in half.
In the press release, the USPS said that ahead of this year’s peak season, it’s also adding more new package sorting machines, increasing daily processing capacity, creating more reliable ground transportation, and offering a new shipping solution in the form of USPS Ground Advantage .
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While the holiday season is always busy, DeJoy said he’s not sure if the Postal Service will see higher mail volume at the end of 2023, according to Federal News Network. (During the 2022 holiday season, the Postal Service processed over 11.7 billion pieces of mail and packages, per the release.)
However, regardless of volume, the agency stressed its commitment to preparing and providing “outstanding service” this year.
“We understand the importance of every single package and letter that is sent during the holidays,” DeJoy said in the release. “That is why we continue to adapt and execute on strategies to modernize and transform the Postal Service into the high performing organization the nation expects and deserves. I am confident in our ability to handle the peak season surge and deliver exceptional service to the American people during the holidays and beyond.”
