Postal Rates Likely To Rise

[jeffrey]

According to a report in the Wall Street Journal, postage stamp prices could rise to more than $0.41 by early 2006 with the US Postal Service set to ask for at least a 10% hike in postage stamp prices.

The paper said that large US Postal Service increase request is expected because Congressional passage of proposed legislation overhauling the postal system is unlikely.

A new rate rise could backfire for the US Postal Service by encouraging people to pay bills via the Internet and with automatic withdrawals from banking accounts to avoid the mail system. It may also drive more people to correspond over the Internet rather than send letters.