Postal Service, citing losses, seeks higher stamp prices

(Photo by Justin Sullivan/Getty Images)

WASHINGTON – The U.S. Postal Service is hoping it can soon raise stamp prices by a penny or more.

The postal service on Wednesday reported a quarterly loss of $562 million. The loss was blamed om continued erosion in the use of first-class mail as well as expensive mandates for its retiree health care obligations.

It also attributed losses to a forced reduction in stamp prices last year.

The postal service notched double-digit growth in its package business. But that wasn’t enough to offset losses in both first-class mail and junk mail.

Legislation passed by a House committee would relieve the postal service of expensive pre-funding requirements and allow a one-cent increase in the price of a first-class stamp. The postal service is urging congressional action soon.