Earlier this summer, the cost of the Forever Stamp increased by 5 cents, marking the largest hike for first-class mail in the U.S.
If you haven’t stocked up yet, you might want to consider it, especially since more price increases are already looming.
The recent adjustment, effective July 13th, saw first-class stamps jump by 7.4%, bringing the price to 78 cents each. Honestly, it might not be too long before you’re facing a dollar.
This July increase was the seventh since 2021, with two hikes already occurring in 2023 and 2024. Since 2014, the price of stamps has increased by nearly 30 cents each.
Back in September, USPS put forth a proposal to raise stamp prices for five categories over the next three years. Additional changes are expected every January and July through to the end of 2027, as confirmed by USPS.
Most of the price hikes have been 5 cents, with the last two increases dating back to January 2019. If the next four hikes follow suit, Forever Stamps could reach 98 cents each (but remember, if you’re paying in cash, you might need a penny to make it work).
On average, the last ten stamp price changes have been about a 5.2% increase. If that trend continues, stamps might cost around 96 cents by the summer of 2027.
However, this data leaves some questions about future price adjustments. USPS has to adhere to a price cap for these changes, which is influenced by factors like inflation and mailing volume.
It’s the Postal Regulatory Commission’s job to ensure that USPS’s proposed price changes adhere to legal and regulatory standards. Before any price adjustments are made, they must also be approved by the Post Office Governor.
Still, it’s hard to believe that just a few years down the line, it might cost you a dollar for a Forever Stamp. Interestingly, the Postal Regulatory Committee stated that instead of the current two-year review periods, they might shift to annual adjustments for major products like letters and magazines.
Historically, stamp prices have only decreased twice: first in 1919 from 3 cents to 2 cents per ounce, and then in 2016 when stamps dropped from 49 cents to 47 cents, but that change was brief.
In the meantime, USPS faces significant financial challenges and ongoing discussions regarding its future, especially during the Trump administration. Trump had previously shown interest in overseeing USPS, which operates under a board appointed by the president and in the Commerce Department’s purview.
He mentioned his desire to create a more efficient post office that doesn’t incur heavy losses, hinting at possible mergers while ensuring it remains a postal service.
David Steiner, the new postmaster general, shared his belief that postal services should not be privatized or strictly a government function. He emphasized the importance of the USPS maintaining its independent entity status to meet expected financial and service goals.
