USPS Postage Rate Increases for 2016

November 20, 2015

By Todd Haycock

As you may be planning your budgets for next year, having an understanding of the potential postage rate increases will be important. In discussions with the United States Postal Service (USPS) at the Mailers Technical Advisory Committee (MTAC) in November they indicated that there will not be a postage rate increase in 2016 for market dominate products such as First-Class Mail. The USPS is allowed to increase postage rates each year based on the CPI-U as described in The Postal Accountability and Enhancement Act of 2006. The most recent published CPI-U rate for September is 0.311% and has been falling so the USPS has decided not to file for an increase. In addition, the exigent rate increase of 4.3% that was imposed in 2014 will have reached the allowable additional revenue for the USPS in approximately April 2016. This may allow for this increase to be removed which will decrease postage rates. There are a few factors that may change this expected decrease such as legislation but currently it appears as if the decrease will take place in the April time frame.

At the end of October the USPS announced a pricing increase for domestic competitive products. The competitive products are not limited by The Postal Accountability and Enhancement Act of 2006 and as such can change pricing as required. These changes will take effect in January 2016 and will impact pricing and some mailing standard changes for the following products:

  • Priority Mail Express®
  • Priority Mail®
  • First-Class Package Service®
  • Parcel Select®
  • Standard Post™
  • Extra Services
  • Return Services
  • Mailer Services
  • Recipient Services

A listing of new pricing and service changes for the competitive products can be found at pe.usps.com.

 

Share:Share on FacebookGoogle+Share on LinkedInTweet about this on TwitterEmail to someone

DISCLAIMER: All content provided on the TransCentra blog is for informational purposes only. TransCentra makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. TransCentra will not be liable for any errors or omissions in this information nor for the availability of this information. The views expressed by the authors on this website do not necessarily reflect the views of TransCentra, this website, or those who link to this website. Comments on the TransCentra blog are the sole responsibility of their writers and the writers will take full responsibility for any proceedings that result from something written in a comment. TransCentra and its writers are not held liable for any content that is republished or used by others.

Billing & Payments

News

Combined Company to be listed on the NASDAQ Global Select Market NEW YORK, Feb. 21, 2017 (GLOBE NEWSWIRE) — SourceHOV, LLC (“SourceHOV”), Novitex Holdings, Inc. (“Novitex”) and Quinpario [...] READ MORE

4855 Peachtree Industrial Blvd. Suite 245 Norcross, GA 30092

P:(678) 728-2500

© 2019 TransCentra, Inc.