Future Postal Rate Hikes To Be Higher Than Expected?
The Postal Service could base its rate request on projected costs for the 2008 fiscal year, beginning October 2007. "It is not surprising that the Postal Service would want to get its rates as high as it can, in case postal reform, with its CPI-based price cap, actually passes," says David Straus, Washington counsel for American Business Media. "Clearly, the Postal Service will want the base as high as possible if it is to be limited to strict percentage increases thereafter."
The rate filing is expected this month, followed by the postal Rate Commission beginning a 10-month review process, with new rates most likely taking effect in spring 2007.