US Postal Service lifts stamp price by 1 cent
By Emily StephensonWASHINGTON, Oct 18 (Reuters) - The cash-strapped U.S.
Postal Service announced on Tuesday a one-cent increase in the
cost of mailing a letter, starting in January.The new prices lift the cost of a first-class stamp to 45
cents starting on Jan. 22, 2012, the first increase in more
than two years.The Postal Service is facing a financial crisis because
mail volumes have declined as more people use electronic mail
or the services of private sector competitors such as FedEx and
United Parcel Service.The Postal Service said the cost to mail a postcard will go
up three cents to 32 cents, letters to Canada or Mexico will
increase five cents to 85 cents, and letters to other
international locations will increase seven cents to $1.05.The agency, which is allowed to raise prices in line with
the rate of inflation, said it filed the new prices with the
Postal Regulatory Commission on Tuesday. The regulator has 45
days to approve the changes.Until the price changes take effect, consumers can still
purchase 44-cent Forever stamps, which do not require
additional postage after prices go up.”The overall average price increase is small and is needed
to help address our current financial crisis,” said Postmaster
General Patrick Donahoe. “We continue to take actions within
our control to increase revenue in other ways and to
aggressively cut costs.”The Postal Service has asked Congress for permission to
drastically overhaul its business, including cutting Saturday
mail delivery and eliminating a massive annual payment to
prefund retiree health benefits. The agency also is studying
thousands of post offices and processing facilities for
possible closure.
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