Periodicals Postal Rate Hikes Confirmed
Increase to take effect May 12.
The Postal Regulatory Commission has determined that the postal rate hike for Periodicals proposed last monthâ€”the first mandated to be tied to the Consumer Price Indexâ€”does not violate the new postal law and will go into effect on May 12.
Periodicals rates will increaseÂ on average about 2.72 percent according to the Postal Service, though David Straus, ABMÂ Washington Counsel, estimates an increase of nearly 2.9 percent for almost all Periodicals, the difference being that a limited number of out-of-county pieces and in-county qualified publications now receive a discount.
According to the postal service, â€śInterested persons were given the opportunity to comment on the notice adjustment. Most of the comments focus on planned increases for specific rate categories or products. None claims that the planned increase for any class violates the price cap.â€ť
Under the Postal Accountability and Enhancement Act, the Postal Service may â€śbankâ€ť the difference between the CPI cap and theÂ implemented price changes, which meansÂ that the .18 percent difference between the rate hike and theÂ 2.9 percent CPI can be added toÂ the CPI forÂ rate hikes within the next five years.Â Â
Also under the new law, theÂ PostalÂ Service has extensive flexibilityÂ to vary rates within classes as long as the class average is CPI-limited. However, Straus says that the increases within the PeriodicalsÂ class this time, at least, are very nearly across the board,Â with extremely small variations among different publications.Â