Budget Alert: Postage Rates To Rise In January
The United States Postal Service (USPS) has filed notice with the Postal Regulatory Commission (PRC) of price changes to take effect January 27, 2019. The Governors of the Postal Service, which approved the prices, believe these new rates will keep the agency competitive while providing it with needed revenue. The PRC will review the prices before they are scheduled to take effect.
The proposed prices would raise Mailing Services product prices approximately 2.5 percent. Shipping Services price increases vary by product. For example, Priority Mail Express will increase 3.9 percent and Priority Mail will increase 5.9 percent. Although Mailing Services price increases are based on the Consumer Price Index (CPI), Shipping Services prices are primarily adjusted according to market conditions.
If the prices are favorably reviewed by the PRC, the new prices will include a five-cent increase in the price of a First-Class Mail Forever stamp, from 50 cents to 55 cents. The single-piece additional ounce price will be reduced to 15 cents, so a two-ounce stamped letter, such as a typical wedding invitation, will cost less to mail, decreasing from 71 cents to 70 cents.
The proposed Mailing Services price changes include moving Letters (1 oz.) from 50 cents to 55 cents, Letters additional ounces from 21 cents to 15 cents and Letters (metered 1 oz.) from 47 cents to 50 cents. Outbound International Letters (1 oz.) and Domestic Postcards will remain at $1.15 and 35 cents, respectively.
The proposed domestic Priority Mail Retail Flat Rate price changes include Small Flat Rate Box from $7.20 to $7.90, Medium Flat Rate Box from $13.65 to $14.35, Large Flat Rate Box from $18.90 to $19.95, APO/FPO Large Flat Rate Box from $17.40 to $18.45, Regular Flat Rate Envelope from $6.70 to $7.35, Legal Flat Rate Envelope from $7 to $7.65 and Padded Flat Rate Envelope from $7.25 to $8.
First-Class Package Service, a lightweight expedited offering used primarily by businesses for fulfillment purposes, will move to zone-based pricing to better align with the cost of service and improve value based on distance.