(Hope Yen – Associated Press)
Seeking to bolster the ailing U.S. Postal Service, federal regulators moved Friday to allow bigger hikes in stamp prices beyond the rate of inflation, a move that could eventually add millions more dollars to companies’ shipping rates from prescription drugs to magazine subscriptions.
The Postal Regulatory Commission announced the decision as part of a much-anticipated, 10-year review of the Postal Service’s stamp rates. It concluded that the post office’s mounting red ink from declining mail volume and costs from its pension and health care obligations hamper the ability to provide reliable mail and package service in the digital age.
The commission’s plan would give the Postal Service freedom to raise the price of its first-class stamp, now at 49 cents, by an additional 2 percent above the rate of inflation to help avoid bankruptcy and make needed multi-billion dollar investments, such as upgraded information technology and delivery trucks. Click here to read more.