Postal rate changes take effect

Postal rates will change January 8. 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.

This rate increase is needed to fulfill the requirement of the federal law passed in 2003. That law requires the Postage Service to establish a $3.1 billion escrow account. The use of the funds will be determined by Congress at a later date. Without this federal mandate, it would not have been necessary to raise rates in 2006.

January 8, 2006