2019 Postage Hikes Could Top 5% As Inflation Soars

The Consumer Price Index rose 0.2% in May, marking a 2.8% rise in the last 12 months.

That means mailers will be paying more come January 2019. Under current law the USPS can raise postage rates annually by the rate of inflation, which has been slowly creeping up over the past few years.

The January 2018 rates increased 1.9% based on the rate of inflation. The new numbers indicate the January 2019 increase could be close to 3%.

But that number goes to 5% if the Postal Regulatory Commission gives final approval to its new rate setting plan. Under that plan, introduced in December, the USPS is given the power to raise rates an additional 2% over the rate of inflation.

The PRC announced it would make a final determination by the end of 2018. The proposed plan also includes an additional 1% rate hike power on top of the 2% if the USPS meets service standards.

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