In case you haven’t heard, postage rates will increase May 31. Short notice…but we did have an idea that it was coming.
The Post Office has to get approval from the Postal Regulatory Commission on any rate increase. This is part of the congressional oversight that exists for the US Postal Service.
The first two attempts were rejected, so the third time must be the charm. Rates, however, won’t increase evenly across the board. Adjustments to individual prices are allowed, and this time there are new sortation levels to help leverage automation equipment. So even though the overall increase, which is tied to the rate of inflation, is 1.937%, each mailer might experience a different effect.
Rate increases are pretty much an annual event. Again, Congress has set it up that way. Yes, the Post Office needs the revenue. Congress needs the revenue, too. So far, tax dollars are not contributing to the operation of the U.S. Postal Service. In fact, the retirement accounts that are driving the posted losses end up in the federal revenue stream, a practice that many feel is unfair.
Mail will remain a very effective and needed marketing tool. None of us like increased prices. We all want a deal. But postage increasing with the rate of inflation is reasonable. You can and should plan on it.