After four straight years of seeing the price of a first-class stamp rise, the Postal Service will skip an increase in the coming year.
Postmaster General John E. Potter has announced in an internal postal memorandum that there will be no rise in prices next year for products in which the agency dominates the market, such as first-class mail.
That means the cost of a first-class stamp will remain at 44 cents.
The Postal Service has been implementing rate increases annually in recent years, with increases announced in January to take place in May.
In 2006, the stamp price went up 2 cents to 39 cents. In 2007, a stamp was costing 41 cents and in 2008 it was 42 cents. This year, another 2-cent hike made the cost 44 cents.
First-class rates cover the type of mail most widely used by individuals, cards and letters. Many businesses use first-class service to deliver bills.
Standard mail is advertising mail, periodicals include newspapers and magazines, and single-piece parcel post covers packages sent by individuals.
Because the Internet and email have taken much of the postal service’s letters and bill payments away, the postal service has struggled financially.
The service has cut thousands of jobs, closed branches or reduced hours, and stepped up its efforts to use more automation at its facilities.
In an effort to ease the financial problems of the postal service, Congress delayed for a year the agency's requirement to make an advance payment of more than $4 billion in future retiree health benefits.
"While increasing prices might have generated revenue for the Postal Service in the short term, the long-term effect could drive additional mail out of the system. We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace," Potter said in his statement.
Still unknown is whether the service will implement increases for its other services, such as priority mail, express mail, parcel select and international products.
