Don't Forget USPS Post Office Is Increasing Rates on May 11, 2009. Christopher Shearer

Christopher Shearer

The U.S. Postal Service announced that the price of a first-class stamp will increase from 42 cents to 44 cents on May 11, 2009. That gives you plenty of time to stock up on what the Post Office calls its “Forever Stamp,” a special stamp that has no price denomination printed on it but is good for any first-class letter weighing up to one ounce -- forever, no matter how much postal rates increase in the future. This means you don't have to locate and horde a bunch of one- and two-cent stamps to mail your letters after the increase. You can simply purchase these special stamps at today's 42-cent rate and use them now or in the future, even if postal prices double or triple. The forever stamp, an idea adopted in Europe years ago, was adopted in the US in 2007 and features the Liberty Bell.

Why is this important? Well, here's our two cents. In 1968, first-class stamps were six cents. Since then, the price has risen only 15 times. However, in December 2007, legislation was passed linking postal rates to the consumer price index, which has caused rates to increase each of the last two years – and could easily lead to annual increases from now on. Postal officials estimate that the 2-cent increase will only cost the average household about $3-a-year, but if you utilize the postal service a lot for your business, be aware that other services will also increase on May 11 as well, which do not offer this “forever” feature. This includes a one-cent increase of postcard stamps to 28 cents, a five-cent increase on the first ounce of a large envelope to 88 cents, and a five-cent increase to the first ounce of a parcel to $1.22.