As part of “Delivering for America,” its 10-year plan to achieve financial sustainability and service excellence, the United States Postal Service has announced a postage increase effective on Sunday. The price of a first-class stamp will increase to .58 cents.
The proposed price changes would raise overall Market Dominant product and service prices by approximately 6.9 percent. First-Class Mail prices would increase by 6.8 percent to offset declining revenue due to First-Class Mail volume declines. In the past 10 years, mail volume has declined by 46 billion pieces, or 28 percent, and is continuing to decline. Over the same period, First-Class Mail volume has dropped 32 percent, and single piece First-Class Mail volume — including letters bearing postage stamps — has declined 47 percent.
“For the past 14 years, the Postal Service has had limited pricing authority to respond to changing market realities,” said Postmaster General and CEO Louis DeJoy. “As part of our 10-year plan to achieve financial sustainability and service excellence, the Postal Service and the Board of Governors are committed to judiciously implementing a rational pricing approach that helps enable us to remain viable and competitive and offer reliable postal services that are among the most affordable in the world.”
With full implementation, the Postal Service’s 10-year plan is designed to reverse a projected $160 billion in operating losses over the next 10 years. The Plan’s growth and efficiency initiatives, including the proposed pricing changes, together with necessary legislation, should allow the Postal Service to make investments totaling approximately $40 billion over the next 10 years to modernize and improve our infrastructure to become more efficient and service responsive.
In 2020, the Postal Service delivered approximately 129.2 billion pieces of mail and packages to customers located in every state and territory, county, city, town and rural area in the nation.