The Governors of the U.S. Postal Service have approved new prices for First-Class Mail, Standard Mail, Periodicals (newspapers and magazines), Package Services (retail Parcel Post), and Special Services, effective May 11, 2009. The price of a First-Class Mail stamp increases two cents to 44 cents, and the additional ounce price remains at 17 cents. Note that most Postal Service shipping services prices were adjusted in January 2009 and will not change in May.

Other price changes on May 11 include: a postcard stamp increases a penny to 28 cents; the first ounce of a large envelope (flat) increases 5 cents to 88 cents; the first ounce of a parcel increases 5 cents to $1.22. New First-Class Mail International postcard and letter (first ounce) prices are: Canada - 75 cents, Mexico - 79 cents, and other countries - 98 cents.

The USPS recently reported its first quarter results (Oct. 1 - Dec. 31). It incurred a net loss of $384 million as the economic recession contributed to a 5.2 billion piece mail volume decline compared to the same period last year. The 9.3 percent volume drop marked the eighth consecutive quarter of accelerating volume declines. With no economic recovery expected for the remainder of FY 2009, the Postal Service projects volume for the year will be down by 12-15 billion pieces.

Most of the decrease in mail volume is attributable to the worsening recession, which has adversely affected all classes of domestic mail. First-Class Mail volume decreased by 1.8 billion pieces and Standard Mail volume was down 3.0 billion pieces in the first quarter.

In addtion, the Postmaster General recently told Congress that the Postal Service was in "acute financial crisis" and asked for flexibility in the number of days the postal service delivers mail and for an eight-year adjustment to the USPS funding schedule for retiree health benefits.

Updated 2/11/09 to correct rate of postcard stamp.