The U.S. Postal Service today announced it will not implement a postage increase in January 2022. The next increase will be in July 2022.
Then it will begin a new regime of twice-yearly increases, beginning in 2023.
The new pricing plans depend upon the approval by the U.S. Court of Appeals for the District of Columbia Circuit of the rate-increase authority created by the Postal Regulatory Commission. NNA and other mailer organizations have sued the PRC, saying its new postage pricing regulations are not permitted under federal law. A decision in that case is expected by the end of the year.
Next July’s increase will take into effect the cost of inflation for 10 months, the expense of covering unpaid retiree health costs mandated by Congress, additional charges to account for the effects of falling mail volume and adjustments for mail classes like Periodicals that are reportedly not covering the cost of handling, transportation and delivery. Unless Congress changes the law, the increase for July 2022 is likely to be higher than the August 2021 increase because of rising inflation, increased USPS costs and other factors. NNA projects increases of 10% or more for Periodicals.
NNA Chair Brett Wesner said today that Congress holds the keys to fixing USPS.
“We continue our efforts to persuade Congress that its own inaction is at the root of this problem," Wesner said. "Now we have a system where USPS is being rewarded for service failures because the more mail it drives out of the mail stream, the more money it can demand from mailers to cover its rising costs. We hope the Court of Appeals also sees the injustice here and acts quickly to set universal service back on a course of sustainability.”
The Postal Service’s alert to industry on rising rates is here: https://www.nna.org/pub/doc/Postal-Service-Announces-New-Market-Dominant-Price-Adjustment-Schedule.pdf