The United States Postal Service announced a price increase on February 11th, to take effect on May 12th. This increase was presented under the new Postal Accountability and Enhancement Act (PAEA), and is not a traditional “rate case” with all of the litigation requirements. Thus, the reasonably quick implementation.

This was an expected increase. After the Q1 results were announced – with volume down from the same period last year, and $3 billion dollars of debt, it was simply a question of when the increase would be announced.

Under PAEA, the USPS is capped at the CPI for rate increases. By class of mail. Within the class, although, the rates are allowed to vary. CPI is 2.9% (as noted on the PRC website), and the USPS followed that legal guideline. However, each mailing has its’ own characteristics, and we urge customers to analyze their mailing using our rate calculators. Some will experience a larger increase than others.

As noted, these rates take effect on May 12th, and we expect the USPS to issue rules as to exactly when and how to apply the increase.