SECOND POSTAGE HIKE IN 2021 “VERY POSSIBLE”

The new postal rate system became law on January 15, 2021, giving the USPS the power to file another rate hike later in the Spring.

LSC Communications reports: “From the 2020 Annual Compliance Report (ACR) the USPS estimates the density factor to be 4.5% and the retirement authority to be 1.062%, if the PRC agrees with these figures when they publish the ACD (Annual Compliance Determination report) in March or April the USPS may announce a rate increase with 90 days’ notice.

“This means the postage payer may see a postage increase in summer 2021 of up to 5.56% (4.5% density + 1.062% for retirement). For underwater products such as Marketing Mail flats and Periodicals, the possible rate increase may be up to 7.56% due to the 2% allowed for non-compensatory.
“This increase would be on top of the 1/24/2021 rate increase of approximately 1.45% on Periodicals, 1% on letters, and 3.5% on Marketing Mail flats & CR.” … (click to read more)