INFLATION
USPS wants to raise stamp prices again: What is the history of postage rates in the US?
In what could be the seventh price increase in five years, the postal service is looking at upping the cost of stamps to 73 cents.
The US Postal Service (USPS) is seeking another hike in stamp prices. This proposed increase, if approved, would raise the cost of a First-Class Forever stamp from 68 cents to 73 cents, marking an almost 8% jump. This comes just six months after the previous increase in January 2024.
The USPS cites financial stability as the reason behind the request, aiming to align with their 10-year plan for modernisation. While the price increase may seem small, it’s part of a larger trend of rising stamp costs.
“As changes in the mailing and shipping marketplace continue, these price adjustments are needed to achieve the financial stability sought by the organization’s Delivering for America 10-year plan,” USPS said in a statement. “USPS prices remain among the most affordable in the world.”
Ultimately, the Postal Regulatory Commission will decide the fate of this proposal which would take place on 15 July.
The evolution of mail prices
In the early days of American mail delivery, the system was far less standardised. The cost of sending a letter depended heavily on the distance it traveled. This inconvenient system persisted until 1847, a pivotal year for US mail. The brainchild of reformer Rowland Hill, a uniform rate system was established, charging the same price for letters regardless of distance within the country. This groundbreaking change significantly boosted efficiency and accessibility and the first US stamps, the 5-cent and 10-cent Black Bostons, were issued the same year.
The period following the introduction of stamps saw a relative lull in postage rate adjustments. While occasional increases occurred, the cost remained fairly stable for a long stretch. This stability likely contributed to the enduring popularity of letter writing throughout the 19th and early 20th centuries.
However, the landscape began to shift in the latter half of the 20th century. With the rise of modern communication technologies like telephones and later, email, letter volume started to decline. More regular prices increases could counter reduced mail loads.