The Postal Service is asking for a temporary price increase on a variety of mail services for the peak holiday season to offset increased shipping costs. The USPS said in a statement that the temporary rate adjustments are “similar to past years that help cover additional management costs to ensure a successful peak season.”
The price increases, which will range from 25 cents to more than $6 per package, will go into effect on October 2, 2022 and last until January 22, 2023 for individuals and businesses with shipments that include Priority Mail, Priority Mail Express and First- Class Parcel Service.
“These temporary fees will keep USPS competitive while providing the agency with the revenue to cover additional costs in anticipation of peak season volume,” he said. The Postal Regulatory Commission has yet to approve the higher rates.
The USPS enacted similar temporary price increases in 2020 and 2021 due to increased demand and additional shipping costs.
Last month, the cost of a US stamp rose by 2 cents, raising the cost of sending a first-class letter by 3.4% to 60 cents. Such a modest price rise seems almost curious given that global consumer prices have risen 9.1% year-on-year, the fastest pace in 40 years.
Packages and parcels are where the Postal Service is really making money today. The USPS handles the final delivery of many packages sent by Amazon ( AMZN ) and other online retailers, with items delivered in bulk to the post office closest to the buyer’s home.
— CNN Business’ Chris Isidore contributed to this report.