The United States Postal Service is raising prices this weekend. The increases make good fiscal sense, even if they raise the hackles of the agency’s loyal customers.
On Sunday, the cost of a Forever postage stamp will jump from 60 cents to 63 cents. The USPS announced the increase in October; its oversight body, the Postal Regulatory Commission, signed off on the plan in November.
The increases come after a banner year for the USPS. The agency reported a record $56 billion in net income for fiscal 2022, which ended in September. Compare that to the combined net income of three USPS competitors— Amazon.com, United Parcel Service, and FedEx – from the past 12 months: Roughly $27 billion.
So, why do stamp prices need to rise if profits are high? Congress, cash flow, and net income all play a role.