Estimate 2% for Jan Rate Increase

The USPS said it will propose higher postal rates (for   market dominant products) based on the August 2018  Consumer Price Index (CPI).  The proposed filing will be submitted sometime in October and the rate hike will take effect on January 21, 2018.

The actual proposed changes are unknown at this time, and we are uncertain how much the USPS will draw on “Banked Pricing Authority” (see below right for more information).

However, based on statistics released by the Bureau of Labor, the Consumer Price Index Figures for August (including those used to construct the USPS pricing   authority), reflect the calculated “cap” at 1.987%.  Therefore, our advice to mailers is to estimate around a 2% increase for your 2018 postal budgetOf course specific prices can change plus or minus.

What is the USPS Banked Pricing Authority

 An amount not used in a previous filing or developed through discounts tied to incentives & promotions.  This can be added  to what is available under the CPI cap to increase the net percentage applicable to each class of mail.

 

 

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