The U.S. Postal Service is planning to raise the price of a Forever postage stamp to 73 cents in July, up from the current 68 cents. This increase, if approved by the Postal Regulatory Commission, would mark the sixth price hike since January 2021. Despite these frequent increases, a recent report found that U.S. postage stamps remain a bargain compared to other developed countries in the global marketplace.
According to the USPS Office of the Inspector General, when compared to 30 other nations, the price of a U.S. stamp is cheaper, with only four countries having lower stamp prices. The U.S. has also seen moderate price increases in recent years compared to the average increase of other countries in the sample. The analysis revealed that the U.S. had the lowest stamp price when adjusted for purchasing power parity among the 31 postal services examined.
The reasons behind the continued rise in stamp prices in the U.S. include the decline in first-class mail usage, which has been the agency’s main revenue driver. The Postal Service’s costs have been rising, and pricing formula now includes factors such as density and retiree benefits obligations. Despite the ongoing hikes, the USPS remains the largest market for domestic mail delivery globally, handling half of the world’s domestic mail. Other countries have faced more significant declines in mail volume and have experienced more substantial postage price increases than the U.S.