The United States Postal Service has announced proposed price changes for January 2014. Their request includes price increases around 4.276% for first class letters and 4.259% for standard letters. The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. Since congress has not been able to enact legislation to correct prior legislation, the post office must increase rates to stay viable.

The new single-piece First-Class Mail pricing, effective Jan. 26, 2014 include:

  • Letters (1 oz.) — $0.49 
  • Letters additional ounces — $0.21
  • Letters to all international destinations (1 oz.) — $1.15      
  • Postcards — $0.34

Standard Mail: Upto 3.3 ounces

  • Letters Automation – $0.301
  • Letter Carrier Route – $0.295
  • Flats Automation – $0.553
  • Flats Carrier Route – $0.295

Nonprofit Mail: Up to 3.3 ounces

  • Letters Automation – $0.183
  • Letter Carrier Route – $0.216
  • Flats Automation – $0.404
  • Flats Carrier Route – $0.216

The Governors of the Postal Service voted Sept. 24 to seek price increases above the Consumer Price Index (CPI) due to the financial situation of the post office and congress not passing legislation to correct the problems. They also indicated that the piece adjustment above CPI is necessary in order to ensure the post office will be able to maintain and continue postal services. They did say that if congress enacts laws quickly they will reconsider the pricing strategy.

Except in exceptional or extraordinary circumstances, postage price increases are capped at the rate of inflation as measured by the CPI-U. The Postal Service is filing a price increase above CPI-U due to extraordinary and exceptional circumstances which have contributed to continued financial losses. The PRC will review the prices before they become effective Jan. 26, 2014, and must agree the prices are consistent with applicable law. The new price proposals will be available on the PRC website at www.prc.gov and also will be available at http://pe.usps.com.

The full text of the Board chairman’s letter sent to postal customers about the pricing decision will be available at the following link:

http://about.usps.com/news/national-releases/2013/pr13_chairman-letter.htm.

We will keep you posted as information is given to us from the USPS. If you have any questions call us in San Diego at 619-448-6111 or email info@eyecomm.org. We are glad to help!