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)