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Postal Rates to Spike Again

Following January’s 5.4 percent rate increase, prompted by rising fuel and health care costs, the U.S. Postal Service filed yesterday a request to increase postage rates by an average of 8.5 percent - including a three-cent hike in the price of first-class stamps - writes BtoB. Provided the absence of a set timetable for rate increase requests, the USPS also proposed to create an annual rate adjustments cycle.

The announcement did not please industry players. “Postal rate increases are never good news for organizations that rely on the mail to get their messages and packages out, and this latest increase would mean millions of extra dollars in costs for commercial mailers and nonprofit organizations,” said Jerry Cerasale, senior vp of government affairs for the Direct Marketing Association. The increase “highlights the desperate need for postal reform,” he added.

“Today’s announcement by the United States Postal Service of yet another increase in postage rates, and the prediction of further increases beyond that, illustrates the need to enact postal reform legislation currently pending in the United States Congress,” said Gordon Hughes, American Business Media’s president-CEO.

The USPS said it would give business mailers incentives to use more efficient mail pieces, based on shape and weight.