How is the price of a US Postal Service first class stamp determined?
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The US Postal Service is an independant arm of the Executive Branch of the US government. They have to request permission to increase their rates and justify it through their bookkeeping and budget. The USPS has not been subsidized by the government since 1982 and has to break even like any other company. They use historical figures to help them determine what the best mix of rate hikes are needed to effectively meet their expected budget for the next few years. Inflation rates help with the calculations.

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