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Postage increase only expected to be temporary

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The recent postage increase from 46 cents to 49 cents is a big raise in price for many people who use the postal service, but reported on Jan. 1 that the postage increase in price may just be temporary.

According to the report, the postage increase of three pennies may only last until the US Postal Service can recover the money it lose during the economic downturn. The Postal Regulatory Commission only approved a one cent raise that will remain permanently, so once everything works itself out, there may be a chance to lower the price back down to 47 cents.

According to the US Postal Service, they will get a $1.8 bullion revenue boost from raising the price three cents. The hope is that this boost will help the US Postal Service improve its financial situation that they claimed was caused by the recession.

The real problem remains that many people have turned to email instead of regular postal mail and more bills are being paid online now instead of through the mail. That will continue to hurt the postal service, that is used mostly now for more personal cards and shipping products. Even the shipping of products by the US Postal Service is hurting with options like FedEx and UPS cutting into those profits.

The problem that the US Postal Service faces now is that some businesses fear that people will use the Postal Service less thanks to the postage increase, which will hurt the industry even more.



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