Postal Stamp Inflation

by David on January 3, 2009

With the introduction of the Liberty Bell Forever stamp a few years ago, the United States Postal Service created a stamp that is worth the cost of sending a one-ounce letter rather than simply a face value. A question rose out of this: Does it make sense to stock up on stamps at a lower price today or simply buy stamps over time?

After looking at the cost of first-class postage vs. the general inflation rate since the beginning of 1990, it seems that postal inflation is about the same as general inflation. Both run about 2.7%.

For all intents and purposes, it doesn’t make sense to stock up on stamps except before a postal rate increase, and even then I wouldn’t buy more than a year’s worth of stamps.

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