Postage prices going up - KWWL - Eastern Iowa Breaking News, Weather, Closings

Postage prices going up

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WASHINGTON, D.C. (KWWL) -

It'll cost a penny more to mail a letter next year.  The cash-strapped U.S. Postal Service announced Tuesday that it will increase postage rates on Jan. 22, including a 1-cent increase in the cost of first-class mail, to 45 cents.

Under the law the post office cannot raise prices more than the rate of inflation, which is 2.1 percent, unless it gets special permission from the independent Postal Regulatory Commission. The PRC turned down such a request last year.

The post office lost $8 billion in fiscal year 2010 and the bottom line is likely to be even worse when final figures for fiscal 2011 are released next month.

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