The U.S. Postal Service is expected in the coming days to announce its first price increase after receiving new authority to raise rates above inflation, causing some of its biggest customers to sound dire alarms.
USPS’ oversight body, the Postal Regulatory Commission, late last year gave the mailing agency the ability to issue significantly larger rate increases. The price hikes had previously been tied to inflation, leaving large-scale mail users fearful of the impact the changes will have on their businesses. While postal management has expressed confidence that “judicious” use of its new authority will lead to overall revenue growth for the agency that has for years failed to cover its costs, the customers are warning USPS that it will unintentionally accelerate the trend of declining mail volumes.