For the first time in nearly 100 years, the cost of mailing a letter in the US has gone down.
As of this past Sunday, April 10th, the cost to mail a first class letter (1 oz) decreased from $0.49 to $0.47. Other similar domestic rates dropped as well. For instance, the postcard rate decreased from $0.35 to $0.34.
The reason for the reduction is the removal of a temporary emergency rate increase that went into effect in 2014. In January 2014, the Postal Regulatory Commission (PRC) approved a 4.3% increase to allow the US Postal Service to recoup significant loses incurred during the recent recession. The PRC determined those losses have been recouped and ended the increase.
US Postal Service (USPS) is not happy with this change, claiming “The Postal Service will lose approximately $2 billion in annual revenue resulting from a price reduction mandated by the Postal Regulatory Commission.”
USPS receives no tax dollars for its operating expenses, relying instead on the sale of postage, products and services.