PRC Chairman Predicts 5% Rate Hike In 2009

Wondering What You Can Expect in terms of a postal rate hike next May? Dan G. Blair, chairman of the Postal Regulatory Commission believes the average increase for each class of mail will be about 5%. The actual rate cap will depend upon the behavior of the monthly CPI (Consumer Price Index) at the end of December.

The cap is based on an average over two consecutive 12-month periods, Blair says. “The current value (as of Oct. 21) is 4.4%, and we’ve witnessed an upward trend over the past year.”

The Postal Service confirmed in November it has ended fiscal year 2008 with a volume decline of 9 .5 billion pieces and a net loss of $2.8 billion. “Given the current rate at which the Service is losing money,” Blair says, “it is likely that the rate change in all classes will be close to the cap.”

In other USPS news, the agency announced Nov. 13 it was moving up the date for its parcel service rate increase from May to Jan. 18. Postal officials say that the move is to help offset its losses faster. It will also put USPS on the same pricing schedule as its major parcel carrier competitors.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.