January 2017 Rate Hike Of 1%

The consensus view among industry watchers is that the USPS will file for a rate increase of around 1% sometime this month or early October, with implementation January 22, 2017.

The USPS is waiting for final Consumer Price Index (CPI) numbers upon which it must base its rate request.

“Current CPI is about .6% and trending upward, so by the time the USPS files for their increase at the PRC (Postal Regulatory Commission) it may be anywhere between .6 – 1%. I would suggest budgeting for the 1% to be on the safe side,” writes Joe Schick, VP of Postal Affairs for Quad Graphics. (More here).

Rate hikes must be approved by the Postal Regulatory Commission, which earlier this year ordered the end of exigent pricing which resulted in a rate cut for mailers.

Other proposed regulation changes by the USPS will impact the rates and fees mailers pay in 2017. (More here).

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