USPS temporarily increases shipping rates during holiday season

The U.S. Postal Service said it would temporarily increase prices for various mail services during the holiday peak season to offset rising delivery costs. The company said in a statement that the temporary rate adjustments are similar to those in past years and will help balance the additional shipping costs.

The price increase will range from 25 cents to $6 per package, will take effect on October 2, 2022, and will last until January 22, 2023, and will apply to individuals and businesses using various mail services.

The price increase depends on the weight of the package and the distance it is being delivered. Business Priority Mail packages will increase by 75 cents, while heavier, long-distance deliveries could see a price hike of up to $6 .

The USPS has adopted similar temporary price increase strategies in both 2020 and 2021 due to increased demand and rising shipping costs.

The price of a U.S. stamp rose 2 cents last month, and the cost of a first-class letter increased 3.4 percent to 60 cents. Such modest increases in postage prices seem odd given that the overall consumer price index is up 9.1 percent year-over-year.

Because shipping packages is where the Postal Service really makes its money. The U.S. Postal Service handles many of the packages shipped by Amazon and other online retailers, delivering the items in bulk to the post office closest to the buyer.

The company said: "These temporary price increases will keep USPS competitive while maintaining the company's revenue to cover the additional costs that may be associated with the peak season," but the increase in postage rates still needs to be approved by the Postal Regulatory Commission.

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