2% USPS Rate Hike Approved
Postage prices are increasing on May 31, USPS confirms on Friday. A 2 percent, almost-across-the-board rise will happen on that day now that the Postal Regulatory Commission approves of hikes on all mail types.
"Rate changes among the five major service classes are to include an average 1.949 percent increase for First Class mail, 1.926 percent increase for Standard Mail, 1.966 percent increase for Periodicals and a 1.787 percent increase for Package Services," USPS tells Target Marketing on Firday. "Single-piece, one-ounce, stamped First Class mail letters are set to remain at 49 cents, with Forever Stamps also frozen at 49 cents. Additional ounce rates for letters will rise by one cent to 22 [cents], with letters to all international destinations rising by 5 [cents] (4.3% percent) to $1.20, and postcard rates rising by a cent to 35 [cents]. Metered single-piece letters will see prices rise by half a cent (1.1 percent) to 46.5 [cents]."
Originally, USPS wanted to raise rates on April 26, but the PRC told USPS to fix its requests for three mail types: Standard Mail, Periodicals and Package Services. On Thursday, PRC approved the USPS changes and its request (opens as a PDF).
"The new pricing and classification changes for all market-dominant mail classes and competitive products take effect on May 31, 2015," USPS tells Target Marketing on Friday. "Additionally, the postal service is able to move forward with the remaining calendar year 2015 promotions: Color Transpromo, Emerging and Advanced Technology and Mail Drives Mobile Engagement."
Also on Friday, DMA SVP of Government Affairs Peggy Hudson tells Target Marketing about the organization's reaction.
"While businesses in the direct mail industry are never thrilled to face a rate increase," she says, "as customers of the USPS, we look to the USPS and PRC for continued future predictability and stability regarding rate-setting practices."