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Published: Thu, April 14, 2016
Economy | By Melissa Porter

New USPS stamp prices take effect on Sunday

New USPS stamp prices take effect on Sunday

The price to mail a standard letter will fall from 49 cents to the new rate of 47 cents. The gradual increase in prices throughout the economy reduced the value of those 3 cents through the years until postal officials began rapidly raising the price of a stamp in 1958. The move is expected to cost the postal service $2 billion a year, notes ABC News. On Monday, they rolled back that temporary price hike and lowered the cost of stamps from.

US Postal Service expects the price cuts will lower annual revenues by $2 billion.

Mailing letters, postcards, and parcels get cheaper Sunday as the U.S. Postal Service drops its prices for the first time in 100 years.

The service is still seeking relief from a congressional mandate to pre-fund retiree health benefits, something that neither the government nor private companies are required to do, as well as greater flexibility in setting rates.

USPS warned the forced reduction on first-class mail, postcards, and some business postage would exacerbate its debt load, which has been improved of late. Some estimates see losses returning to billions of dollars a year.

The article above is based on information provided by the US Postal Service. The difference isn't much, but if you're thrifty, now may be the time to stock up on Forever stamps. Under federal law, it can't raise prices more than the rate of inflation without approval from the Postal Regulatory Commission. That was the case when the Postal Service received approval for the 4.3 percent increase that led to the 49 cent stamp.

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