Stamps Are Getting Even Pricier

It might be a good time to stock up on Forever Stamps. Rates are going up at the US Postal Service this summer—a first-class stamp will go up from 55 cents to 58 cents. Some postal service employees will be laid off, too, the Washington Post reports. Postmaster General Louis DeJoy announced a 10-year plan in March designed to get the USPS out of debt that includes stretching out delivery of a letter from three days to six and closing some post offices, Newsweek reports. Some product prices are steeper than others, but overall the rate increase works out to about 7%, CBS News reports.

People aren’t sending letters (or mailing in bills) as much, which has hurt the USPS bottom line, but they are shopping online. The volume of packages during the pandemic has left the service with dismal on-time scores. Shipping experts worry the bump in rates will drive away businesses. And some wonder if the increase is even necessary. The USPS predicted losing $10 billion this fiscal year, but so far is only down $448 million, per the Post. And marketing mail, which died off during the pandemic, is coming roaring back as business start advertising by mail again. (Consolidation of mail-processing facilities already is underway.)