WASHINGTON, DC — Leaves will start falling in Fall, but postage rates could start rising.
Fall begins September 22 and so does the countdown for the critical decision on postage rates from the Postal Regulatory Commission.
PRC Chairman Robert Taub said a decision will be made in early Fall, during an address at MAILCOM ’17. That means mailers could know their fate as early as next week.
That decision will have a big impact on business mailer bottom lines. If the PRC changes the current inflation-cap on annual postage rate hikes — as many expect — mailers could see postage rates rise substantially in January.
The Postal Service wants the rate cap removed altogether. This would mean that rate hikes of 1 or 2 percent could become 4 or 5 percent or more EACH YEAR, at the discretion of postal management. The rate cap, especially in the current low-inflation environment, has served as a check on the USPS’ reach into mailer pocketbooks.
The PRC is required under law to review the rate setting process every ten years and institute necessary changes.
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