It will soon cost 55 cents to mail a letter

KANSAS CITY, Mo. -- It will soon cost more to mail a letter.

Starting Sunday, Jan. 27 a basic Forever stamp will cost 55 cents--that 5 cents more than the current cost.

This is the largest price hike for stamps since 1991 when the cost of stamps increased from a quarter to 29 cents.

The Postal Service said they had to raise the cost of stamps because they are losing too much money.

Despite delivering more packages than ever, the agency lost $3.9 billion last year. That was the twelfth year in a row that they've lost money.

President Trump blames Amazon, saying the post office loses $1.50 for every package it delivers for the retail giant. Post office officials have said that’s not true. They cannot legally ship packages for less than the actual cost.

Post office leaders said the reason they are losing is money is because of rising health care costs. Under law, the post office must pre-fund 75 years worth of retiree health benefits. Since the Post Office does not receive taxpayer dollars, they depend on stamps and other services to pay the bills.

If you want to avoid spending more to mail letters, you can stock up on current Forever stamps. Those will continue to work even after the price increase.

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