The Postal Service relies almost entirely on the revenue generated from postage to fulfill its public mission and cover the costs of delivering mail. As mail volumes decline and operational costs increase, USPS has sought to cover its costs by generating more revenue through increases in the price of postage. Record levels of inflation and additional pricing authorities have recently led to notable increases in the price of Market Dominant mail, including the highest revenue generating class of mail, First-Class Mail. Specifically, First-Class Mail has seen more frequent price increases and a higher percentage of price increases since August 2021.
In this white paper, the U.S. Postal Service Office of Inspector General (OIG) reviewed the prices of standard domestic letters — the equivalent to a one-ounce single piece First-Class Mail letter in the United States — offered to retail customers from June 2018 to June 2023 across a sample of 31 countries.
