Government Postal Delivery

Postal Service proposes increase in stamp prices

Postal Service proposes increase in stamp prices

WASHINGTON — Facing a “precarious financial condition” as fewer customers use its services, the United States Postal Service proposed another round of rate increases Wednesday to go into effect in January — its largest price hike since 2002.

The plan — which would raise the cost of first-class stamps for one-ounce letters to 49 cents from 46 cents, among other changes — is intended to generate an additional $2 billion in annual revenue for the Postal Service. The agency expects to lose about $6 billion in the current fiscal year.

Postage rates jumped one cent in January 2012 and again in January 2013, but those changes were tied to increases in the Consumer Price Index,...