Stamp prices to increase on January 1

By WEEK Producer

Credit: MGN online

Stamp prices to increase on January 1

September 25, 2013 Updated Sep 25, 2013 at 12:14 PM CDT

The cost of a postage stamp may be going up by three cents come the first of the year.

On Wednesday, the U.S. Postal Service announced proposed price changes to help boost the agency's financial crisis.

Under the proposed changes, the price of a first class stamp would increase to 49 cents from 46 cents starting in late January.

The increased cost would help raise revenues for the agency which has been dealing with financial strains due to a declining volume in mail.

Stamped mail currently accounts for 43 percent of U.S. Postal Service revenue.

The price increase is expected to generate $2 billion in annual revenue.

Meanwhile, the Postal Service is paying a consulting firm more than half a million dollars to provide recommendations and analysis on the future of stamps.

The deal comes at a time when the Postal Service said it is losing $25 million a day.