The U.S. Postal Service Board of Governors voted today to accept the Postal Rate Commission's recommendations to increase most postal rates and fees 5.4 percent. The new rates take effect Jan. 8.
This rate increase, the first since 2002, is needed to fulfill the requirement of a federal law enacted in 2003 requiring the postal service to establish a $3.1 billion escrow account. Without this federal mandate, a rate increase in 2006 would have been unnecessary, the USPS has said.
Among the rate adjustments, the single-piece rate for First-Class mail will rise from 37 cents to 39 cents and the postcard rate will increase 1 cent to 24 cents.
“The governors take this action mindful of our obligation to assure the financial integrity of the nation's postal system,” board chairman Jim Miller said in a statement. “These increases will allow the postal service to meet the obligation established by Congress to place funds in escrow in 2006.”