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Historical First Class Stamp Price Increases

USPS Rate Changes – Cost of Postage Stamps, Forever Option

New USPS Rate Change: Stamp Price Increases - mensatic with MorgueFile
New USPS Rate Change: Stamp Price Increases - mensatic with MorgueFile
Learn a brief history of first class stamp price increases & when the postal service will increase the cost of postage stamps. USPS rate change solution: forever stamps.

First class stamps were first introduced by the United States Postal Service (USPS) in July 1885. Here is a brief history from 1885 to present day. Find out how much stamp prices increased in a little over 123 years.

First Class Stamp History: Snapshot of United States Postal Rates from 1885 – 2008

In July 1885, a first class letter only cost two cents to mail. That rate increased to three cents during World War I, but was reduced back to two cents in July 1919 where it stayed for the next 13 years. The first class stamp rate increased in cost to three cents for the second time in July 1932 where it remained for 26 years until an increase to four cents in August 1958.

Since the increase to four cents in August 1958, the cost of first class postage rose in one-, two-, or three-cent increments at least once every five years until April 1988. The rate jumped from 25 cents in April 1988 to 29 cents in February 1991. There were two more increases in the nineties. In 1995, Americans saw an increase to 32 cents; in January 1999, first class stamp rates rose to 33 cents.

Stamp Price Increases: Cost of Postage Went up Several Times in Recent Years

Since the turn of the century, first class postage has risen five times. The rate increases came in January 2001, June 2002, January 2006, May 2007, and May 2008. These increases are noticeably more frequent than past increases; perhaps the advent of the internet and increased use of email contributed to the necessary increases. Individuals no longer rely on mail solely to send personal messages. Even greeting cards can be sent electronically, which most likely cuts into USPS revenues and may drive the need for frequent rate increases.

The Price of a First Class Stamp: Scheduled USPS Rate Change, Forever Stamps

First class stamp rates have increased frequently in recent years, yet in the early years, the rate held steady for decades. According to the postal service, the cost of first class postage will increase from 42 cents to 44 cents on May 11, 2009.

The only way to avoid paying more for postage on or after May 11th is to purchase Forever stamps. Forever stamps can be used to mail a one-ounce letter. They are purchased at the current first class stamp rate, but can be used forever, regardless of how high stamp prices go (no price is noted on the face of the stamp).

Related articles:

2009 Postal Holidays, U.S. Post Office Closings

USPS Priority Mail

U.S. Postal Service First Class Mail

Resources:

United States Postal Service (USPS) website

Postal Regulatory Commission website (Office of Public Affairs & Government Relations)

Lena Gott, Photo Courtesy of J. Gott

Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.

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