Postal Service plans to hike prices for holidays

The United States Postal Service on Thursday proposed raising prices ahead of its peak season, a temporary adjustment it says will help handle the holidays.

Rates for priority mail, first-class services and ground shipping would increase by as little as 25 cents in some cases, and as much as $6.50 in others, according to a release.

The temporary increase, now pending approval by the Postal Regulatory Commission, would be in effect from Oct. 2 through Jan. 23.

The price hike would be part of the Postal Service’s 10-year plan to avoid some $160 billion in projected losses.

President Biden signed into law a reform bill for the Postal Service, a response to concerns that the mail-carrying service was operating at such a loss that it risked running out of funds by 2024.

The legislation eliminated a requirement that Postal Service prefund employees’ retiree health benefits, taking down what was a significant financial burden for the service.

Earlier this year, the Postal Service slowed delivery times for many of its first-class packages to cut costs.

In July, it ordered a fleet of new electric vehicles, transitioning about 40 percent of its vehicle operations to electric power. Though the price tag for purchasing new vehicles was high, the Postal Service lists the move as part of its plan to reduce costs over time.

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