The Postal Regulatory Commission (PRC) has approved rate increases for many types of mail, including periodical mailings paid by newspapers and magazines.
The U.S. Postal Service announced its intention to increase the cost to mail letters and postcards by 6.9% on average beginning Aug. 29. Postage for magazines, newspapers and catalogs will rise by 8.8%. The increase in periodical rates is the second increase this year. In January, rates increased by 1.8%.
The price of a first-class from 55 cents to 58 cents.
USPS raised the price of a first-class stamp from 50 cents to 55 cents in January 2019, the biggest price increase in the agency’s history.
USPS raised prices on its “market-dominant” mail products in January by 1.8% to keep up with the rate of inflation.
Once the new rates go into effect, USPS told lawmakers, mail volume will decrease annually by 2.3% but will bring in $1.7 billion in additional revenue — a more than 4% increase from what the agency currently brings in.
First-class mail, the agency’s most profitable product, saw a decline in recent years that only accelerated under the COVID-19 pandemic.
First-class mail volume declined by about 2.9% every year from 2014 to 2019, but fell by 4.8% in 2020, and dropped by 4.6% as of May 2021.