On February 11, 2008, the United States Postal Service (USPS) announced an increase in postage rates. Along with other increases, the cost of a 1st class stamp will be raised to $0.42 on May 12th.While the most visible change is the 1-cent increase for First-Class Mail letters, the changes are broader and include prices that could save you real dollars when shipping packages:

The Postal Service is authorized by The Postal Accountability and Enhancement Act to adjust prices each May. The good news is that the Act also limits increases to be no more than inflation, as measured by the Consumer Price Index. That basically means that postal rates, at worst, can only stay at their current relative cost. As some increases may be below inflation, the average relative cost of postage will actually decline.

Now may be a good time to stock up on Forever Stamps. These 1st class stamps, currently priced at $0.41, may be used in place of the new $0.42 stamps. Generally, being able to buy something now that will have a higher value later is seen as in investment. More than 6 billion “forever” stamps have been sold since they were introduced last year. Read more about the Forever Stamp.