During the week of February 10th, the USPS updated its forecast for the Consumer Price Index (CPI) for the July 2025 rate filing to 2.854%, an increase from the previous estimate of 2.7%. They plan to incorporate an additional 2.1% for density and 2.3% for retirement funding, leading to an estimated July postage increase of 7.254% .

In addition, the USPS distributed $530 million in postal credits through the 2024 growth incentives, but now they’re looking to recoup that amount. This translates to a potential increase of about 4.3% for marketing mail and approximately 0.5% for First-Class mail, which could result in an overall increase of around 11.5%.

Furthermore, the USPS is contemplating the elimination of some work-share discounts. Currently, mailers receive a discount of 2.7¢ per piece for Destination Sectional Center Facility (DSCF) delivery and 2.4¢ for Destination Network Distribution Center (DNDC) delivery. It’s important to note that any changes will need to be approved by the Postal Regulatory Commission (PRC) before they take effect. The PRC, an independent agency that oversees the USPS, has the authority to approve or deny postal rate increases, although their role is primarily to ensure compliance with relevant laws and regulations.

Unfortunately, the recent departure of US Postmaster General Louis DeJoy doesn’t halt the steamroller momentum of the July impending rate increase. However, many believe that The Postal Service Board of Governors is searching for a new leader who actually believes in the United States Postal Service. We will keep you abreast as things unfold.