U.S. Postal Service increases prices an average of 5% for shipping services

The U.S. Postal service is raising prices in an effort to bring in enough revenue to avoid bankruptcy. Prices are going up for a whole host of shipping services including a 3.1% increase for priority mail. The price of a first class postage stamp is still increasing a penny from 44 cents to 45 cents as earlier scheduled for January 22.

For more details see AP story: “Postal prices going up for express, priority mail.”

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U.S. Postal Service Proposes Price Increases

The cost of mailing a letter will likely go up soon. The U.S. Postal Service announced yesterday that it wants to increase the price of a first class postage stamp by another 2 cents or 4.5% as of January, 2011. The Postal Service cites on-going and worsening financial difficulties as the main force driving prices ever upward:

“Faced with plummeting mail volume traced to the recession and increased use of the Internet, the Postal Service is projecting a deficit of nearly $7 billion for the next fiscal year. Despite eliminating millions of work hours and reducing expenses by more than $1 billion every year since 2001, a budget gap remains….
….’There is no one single solution to the dire financial situation that the Postal Service faces…These proposed rate adjustments are moderate and part of a fair and balanced approach to insuring mail service for all Americans well into the future.'”