In case you haven’t heard, the US Postal Service has proposed raising stamp prices yet again. I guess we can consider ourselves lucky this time around, as we dodged the seemingly annual spring stamp price increase.
This time around, they’re proposing a $0.02 increase in the price of a first class stamp ($0.44 to $0.46), effective January 2011. There would also be corresponding increases in other postal rates.
This latest increase is being driven by a steep drop in mail volume which has reportedly fallen by 20% since early 2007. This decline has resulted in a $7B annual budgetary shortfall, and the proposed increases will only generate about $3B.
The proposed increase now sits with the Postal Regulatory Commission, who oversees the USPS. The commission has 90 days to vote on the proposal.
Oh, and in case you’re curious, you might want to check out my historical graph of stamp prices which I last updated in 2008.