USPS Postage Rate Increases for 2016November 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.
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