At the start of the business Monday, the price of stamps went up.
Blaming it on financial problems, the United States Postal Service increased the cost of first-class postage stamps by 3 cents for the time being.
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The price of a first-class stamp went from 46 cents to 49 cents, as LevittownNow.com first reported in December.
According the Postal Regulatory Commission, the price increase is to last no more than two years. Although some wanted the price hike to be lasting, the commission rejected that request. However, the price jump could be made permanent through inflation over the next two years.
The price hike will last ”just long enough to recover the loss,” Postal Regulatory Commission Chairwoman Ruth Goldway said in a statement.
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The rate hike is expected to help the Postal Service to recoup $2.8 billion in losses. The post office blames the losses on the recession and a drop in mail usage.
From the commission:
The Postal Accountability and Enhancement Act of 2006 requires the Postal Service to demonstrate to the Commission its need for an exigent price increase above the CPI cap by describing the exigent circumstances and showing why they necessitate the increase, showing that the proposed rates are reasonable and equitable, and describing the circumstances under which the increases could be rescinded or reduced.
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The Postal Service reported a $5 billion net loss in the fiscal year that ended in September. While that may seem like a huge loss, the post office lost nearly $16 billion the year before.
Critics have noted the price increase is likely to push more people away from snail mail and only exacerbate the Postal Service’s losses.
