Increase in USPS stamp prices forecasted up until 2027
The United States Postal Service (USPS) has announced plans to increase the price of a Forever stamp, with the cost expected to reach 98 cents by the summer of 2027. This projection is based on a series of planned price hikes over the next three years.
The USPS implemented the first of these increases on July 13, 2023, raising the price of a Forever stamp to 78 cents. This marked a 7.4% increase, the largest single increase in recent memory for Forever stamps. Since 2014, stamp prices have climbed nearly 30 cents, with consistent 5-cent increments becoming common.
If this trend continues, the cost of a Forever stamp will reach 98 cents by mid-2027. The USPS has planned additional hikes for January and July of each year through 2027, targeting five total increases over three years as part of their financial improvement efforts.
The Postal Regulatory Commission oversees and approves changes in stamp prices, ensuring they comply with price caps based on inflation and mail density. The commission also approved the USPS's previous proposal for five increases over three years.
The USPS plays a significant role in national communication and commerce, and these price increases could impact consumers and businesses alike. It's important to note that these changes are not unprecedented. In 1919, stamp prices briefly dropped from 3 to 2 cents per ounce, and in 2016, they dropped from 49 to 47 cents and returned to 49 cents in early 2017.
The financial challenges facing the USPS have been a topic of debate, with former President Donald Trump suggesting moving the USPS under the Department of Commerce. However, current Postmaster General David Steiner opposes privatization of the USPS, believing in its current structure as a self-financing, independent entity.
[1] USPS Fact Sheet on Stamp Price Increases: https://about.usps.com/newsroom/service-alerts/welcome.htm?NewsID=18898 [3] USPS Announcement on Stamp Price Increases: https://about.usps.com/news/national-releases/2023/pr23_051_0001.htm
- Businesses and individuals may need to adjust their personal-finance budgets to account for the upcoming price increases in stamps, as the USPS plans to raise the cost of a Forever stamp over the next three years, with five total increases targeted by 2027.
- The wealth-management industry may embrace the USPS's plans for investing in its financial improvement, as the postal service aims to generate more revenue through increased stamp prices, a move that could stimulate the economy and potentially promote growth in various sectors, including business and commerce.
