Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

U.S. Postal Service can't lick inflation, seeks to hike stamp prices again

Economy Aug 09, 2022 06:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A United States Postal Service (USPS) mailbox is seen in Manhattan, New York City, U.S., May 9, 2022. REUTERS/Andrew Kelly

By David Shepardson

WASHINGTON (Reuters) -Surging inflation will prompt the U.S. Postal Service to seek higher prices for stamps and other services in January, just five months after its recent hike, as it continues to lose money.

USPS raised prices in July by about 6.5%, including increasing the price of a first-class stamp from 58 cents to 60 cents after hiking stamps by 3 cents in August 2021.

U.S. Postmaster General Louis DeJoy said Tuesday inflation would cause costs to exceed its 2022 budget plan "by well over $1 billion." DeJoy said he plans to recommend to the Postal Board of Governors that USPS raise prices again in January.

DeJoy has said USPS for years had failed to charge enough for package and mail delivery.

USPS on Tuesday booked a onetime, non-cash benefit of $59.6 billion after President Joe Biden signed financial relief legislation into law. It reported an adjusted loss of $459 million for the quarter, compared to an adjusted loss of $41 million for the same quarter last year.

DeJoy said the Postal Service is working to address some hiring issues but is having success in most areas as it has boosted full-time permanent staff.

"This will enable us to rely less on seasonal employees, which we believe will prove difficult to hire this season," DeJoy said. "We are still having trouble in hiring new letter carriers, especially in rural communities. We are employing new recruiting tactics."

Struggling with diminishing mail volumes despite having to deliver to a growing number of addresses, the USPS before Tuesday had reported net losses of more than $90 billion since 2007. The bill Biden signed in April repealed the USPS's requirement that it annually prepay future retiree health benefits and canceled all past due prefunding obligations.

DeJoy released a March 2021 reform plan that aims to eliminate $160 billion in predicted losses over the next decade.

DeJoy said despite reforms losses would still reach $60 billion to $70 billion over the next 10 years -- and USPS must address those losses.

USPS is also set to receive $3 billion from Congress to boost electric vehicle and charging purchases. Last month, USPS said it plans to buy at least 25,000 EVs - more than twice its prior estimate.

U.S. Postal Service can't lick inflation, seeks to hike stamp prices again
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email