Once again the U.S. Postal Service board will look into hiking the prices of postage stamps on all types of mail. Prices will be hiked as the losses continue to strike the agency. Mickey Barnett, the chief of the board said that the board has directed the service in order to evaluate the price increases.
However, postal officials fear that the hiked prices might drive customers away. The proposal came after the Postal Service shelved a plan to end the Saturday service when it was clear that it did not have the legal authority to do so. But this time the hike will not be a regular one and will be much higher than it was earlier, due to the rate of inflation.
The hiked prices would affect people who send first-class mail which is the most common type of mail that consumers use, as well as businesses who mail newspapers, magazines, marketing material and periodicals. At the moment, price of the first-class stamp is 46 cents and a one cent increase was effective from January 28, 2013.
Postal Service encountered losses despite the cost-cutting measures taken. The service consolidated 60 processing plants and its roster of career employees fell to the lowest number since 1966.