Stamp prices to go up 2 cents in May

WASHINGTON " The post office will get an extra 2-cents worth when you mail a letter starting in May.

The U.S. Postal Service announced Tuesday that the price of a first-class stamp will rise to 44 cents on May 11.

That gives plenty of time to stock up on Forever Stamps, which will continue to sell at the current 42-cent rate until the increase occurs. They will remain valid in the future regardless of rate hikes.

Postage rates go up annually in May, with the new prices announced in February. The overall change is tied to the rate of inflation in the year before.

While the new 44-cent rate covers the first ounce of first-class mail, the price for each additional ounce stays at 17-cents.

The increase will cost the average household $3 a year.

Buffeted by rising costs and declining mail volume, the Postal Service lost $2.8 billion last year and, unless the economy turns around, is headed toward much larger losses this year.

The agency could have cited extraordinary circumstances and asked the independent Postal Regulatory Commission for larger increases, but officials felt that would only result in a greater decline in mail volume.

The post office has been cutting costs and has asked Congress to ease requirements for advance funds for retiree benefits and to allow mail to be delivered five days a week instead of six.