Postal Service may get more freedom to raise stamp prices

Associated Press

WASHINGTON

It may be time to stock up on Forever stamps.

Regulators appear likely to accept the financially beleaguered Postal Service’s request for more freedom to raise the price of mailing letters. It would be the biggest change in the Postal Service’s pricing system in nearly a half-century, allowing stamp prices to rise beyond the rate of inflation.

After a 10-year review, the Postal Regulatory Commission could make its decision next month. It might limit how high prices could go, but the cost of a first-class stamp, now 49 cents, could jump. It’s not known how much.

Financial analysts praise the plan, but it has raised the ire of the mail-order industry, which could pay millions more for sending items such as prescription drugs and magazines and pass the costs onto consumers.

The Postal Service is trying to stay financially afloat as it seeks to invest billions in new delivery trucks to get packages more nimbly to American homes.

An independent agency of government, the Postal Service has lost money for 10-consecutive years. While online shopping has led to years of double-digit growth in its package-delivery business, it hasn’t offset declines in first-class mail. Overall mail volume, which makes up more than two-thirds of postal revenue, dropped 27 percent over the past decade.