USPS formally approves rate hike

The U.S. Postal Service Board of Governors on April 9 formally rubber-stamped the recommended decision of the Postal Rate Commission (PRC) to increase postal rates on June 30. Catalog rates will increase 7%-10%.

Postmaster General Jack Potter also vowed on April 9 to hold off increasing rates again until early 2004. The agency had previously stated that it would need to enforce another rate increase as early as fall 2003.

In explaining the rates in a news conference, USPS vice president of pricing and classification Steve Kearney said that the June 30 rate increase “will provide enough revenue in fiscal 2002 to help us meet PMG Potter’s commitment not to raise rates again until calendar 2004. These rates are very similar to those we proposed last September, retaining many initiatives for greater mailer discounts.”