First-class stamp to cost 37 cents

WASHINGTON (CNN) -- The U.S. Postal Rate Commission on Friday approved a request for a postal rate increase that will jump the cost of first-class stamps from 34 cents to 37 cents by June 30.

The postcard rate will increase by 2 cents, to 23 cents.

The commission called the increase the result of an "unusual settlement" between the U.S. Postal Service, postal employees, mailer groups and competitors.

Postal Rate Commission Chairman George Omas said Friday's decision recommends an overall average increase of 7.7 percent. The largest increases will be in priority mail two-to-three day service, which will see an average increase of 13.5 percent.

Postal officials said the request for the rate increase had been generated before the September 11 terrorist attacks, but was made more urgent by the cost of the mail security concerns that followed.

Postal officials also said this was the first time a postal rate case has been resolved through settlement between various groups.