Postal Service: No Additional Rate Hike This Year

By Joanna Pettas
11/15/2007

The U.S. Postal Service announced today that future postal rate hikes will be tied to the rate of inflation, putting an end to speculation, reported on last month by FOLIO:, about whether the USPS would squeeze in another rate hike before the December 20 deadline.

"We are both happy and relieved that the Postal Service has listened to its customers and spare us all one last litigated postal rate case," wrote David Straus, ABM postal counsel, in an email to FOLIO:. "It's the end of an era that began in 1971."

But, as FOLIO: reported last month, the new law regulates the increase based on an average for the entire class of periodicals, which means some might be hit harder than others. "We hope that the Postal Service, in designing the rates it will file next year under the new law, will keep in mind the extremely high increases imposed upon some publications last July and will not impose such disparate rate increases for periodicals this time," wrote Strauss.

According to a statement by postmaster general John E. Potter, the new pricing regulations, consistent with the Postal Accountability and Enhancement Act of 2006, will increase flexibility for the Postal Service, which intends to use that flexibility to offer volume discounts and contract pricing.