May 14 Faces New U.S. Postal pricing and “Forever” stamps

The price of a first class U.S postal stamp went up from 39 cents to 41 cents per ounce, an increase of 2 cents on May 14, 2007 after an initial increase in prices in January 2006 when the first class stamp rates increased by an overall rate of 5.4%, from 37 cents to 39 cents. Forever stamps protecting the customers against future price rise are also likely to gain popularity among consumers.

Apart from the increase in first class stamps which includes letters, bill payments and greeting cards prices of wedding invitation cards have decreased from 63 cents to 58 cents per two ounces. Bank statements, 2 ounces, presorted, decreased from 54.4 cents to 45.8 cents. Other rates have majorly increased like Postcard prices are up from $0.24 to $0.26, Priority Mail flat rate envelope from $4.05 to $4.60, Express Mail flat rate envelope from $14.40 to $16.95, Parcel Post, 1-pound package, $4.50, up from 3.95, Utility bill, bar-coded, 31.2 cents, up from 29.3 cents.

The rates are speculated to have increased due to the decrease in the Postal Office’s most profitable services, first class Mail, as the Americans rely heavily on paying bills online and using e-mail for both personal and business correspondence now. A constant increase in labour and fuel costs also forced the price hike.

Postmaster General John Potter revealed that even with the higher prices the agency expects a deficit this year as it struggles to compete in a swiftly changing communications market.

The new rates were recommended in February by the Independent Postal Regulatory Commission at a penny more than the rate at which the Post Office governing body agreed on Monday. The new services are given a new name of "First Class Mail International." as against the old name of “Air Letter Post”.

The proposal for selling the first Forever stamps at $.041 was also agreed upon which will always be valid for mailing a letter no matter how much the rates increase as they will not have a price printed on them. The customer can use a stamp already purchased at a lower price when the current rates have increased without adding extra postage to it.

The new rates based on shape are likely to create confusion among consumers in the process of encouraging consumers and businesses to use envelopes and package sizes that are easier for automated processing.
The envelopes that do not bend and are thicker than normal will cost more and if the contents of a First-class large envelope are folded and placed in a letter-sized envelope, mailers can reduce postage by as much as 39 cents per piece.

The international U.S letter charges vary by country as letters to Canada and Mexico rise to 69 cents and to most other countries to 90 cents.