Postage Rates Set for Increase

New rates go into effect January 8 WASHINGTON - The Governors of the U.S. Postal Service voted to accept the Postal Rate Commission's recommendations to increase most postal rates and fees by approximately 5.4 percent across-the-board to take effect January 8. This rate increase - the first since 2002 - is needed to fulfill the requirement of a federal law passed in 2003. That law requires the Postal Service to establish a $3.1 billion escrow account, with use of the funds to be determined by Congress at a later date. Without this federal mandate, it would not have been necessary to raise rates in 2006. Among the rate adjustments, the single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent to 24 cents. The Board of Governors of the Postal Service set January 8, 2006, as the effective date for the changes.