USPS Files Market Dominant Price Change

Blog with BEB 2015-01-15 USPS Postal Rate Increase RequestToday the U.S. Postal Service filed a request with the PRC (Postal Regulatory Commission) for a rate adjustment (1.966%) based on the CPI (Consumer Price Index). The request for increase applies to only “market-dominant products”, which includes Standard Mail, the primary postage used by marketers.
The USPS has requested that the increase take effect on April 26 and estimates that it will generate an additional $900 million on an annualized basis. The USPS estimates that an additional $400 million will be contributed to the fiscal year 2015, if the PRC agrees to meet the proposed implementation date.
The case also includes a separate pricing structure for Standard Mail run through the FSS (Flats Sequencing System). The request removes FSS pricing for carrier route, high density, or high density plus categories. Instead, a five-digit carrier route pallet rate will be created. An estimated 2.465% rate increase is predicted for Standard Flats.
Forever stamps will remain unchanged (49 cents), International letters will increase to $1.20 (a 5 cent increase), and postcard rates increase to 35 cents (a 1 cent rate hike).
We will keep you abreast of the outcome of this filing as it becomes available.

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