What determines a postage stamp rate increase?

Answer by  ramy97 (17)

The rate of inflation and critical circumstances that are currently affecting the postal service are important determinants. Critical circumstances include the fact that the postal service is having fiscal problems.

Answer by  technogeek (6640)

Postage rate increases are determined by the cost of running the US Postal Service. The rate increases are done in order for the Postal Service to continue to function.

Answer by  Hewitt302 (1720)

it depends on the federal government funding allowances to the usps. If funding by Congress is cut, then less services. Services like weekend mail and friday delivery have already been cut in some states. The USPS decides each year how much a price of postage is increased.

Answer by  June77 (292)

Inflation, changes in the price of gas, cost of living increases to employee salaries, and rates of competitor services all affect stamp prices.

Answer by  MathWiz (1408)

The US Postal Services must prove extraordinary or exceptional circumstances. The Postal Regulatory Commission then agrees with them (and rates go up) or disagrees (rates stay the same).

Answer by  tamarawilhite (17883)

The Post Office Postmaster General formally requests a postage rate increase to cover rising costs, and Congress can then approve or deny the request. Congress usually approves such increases. The most recent rate hikes have been based on rising fuel costs, which raise the amount of money needed to cover all deliveries.

Answer by  Roland27 (16334)

Things like rises in gas prices and the overall cost of running the Post Offices daily operations help the United States Postal Service to determine if another hike in postage stamp rates are needed.