USPS delivery truck

In an article posted on the blog Save the Post Office, the author Steve Hutkins suggests the US Postal Service could raise rates again this year by as much as 7 percent.

His analysis is based on how the Postal Regulatory Commission in a 484-page order revised the rate system for Market Dominant products. In plain English, this means the USPS now has the ability to raise rates beyond the Consumer Price index, which with some exceptions, it was not allowed to do by the Postal Accountability and Enhancement Act of 2006.

“Those potential increases are on top of the approximately 1.8 percent increase for First-Class Mail and 1.5 percent increase for other categories the Postal Service has already proposed for 2021. If the Postal Service were to exercise its full rate authority, the total increase would thus be over 7 percent. The new system also gives the Postal Service authority for an additional 2 percent increase for products that don’t cover their attributable costs.”

Hutkins believes the earliest the US Post Service could raise its rates again would be this summer and there may be good reasons for the postal service to maximize its rate authority.

The post is very detailed and he seems to make a good case that there is a chance the USPS could be raising rates again sometime in 2021.

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