The United States Postal Service has released its three-year plan for future postal rate adjustments. This plan is a portion of the overall ten-year plan, Delivering for America, to achieve financial stability and service excellence that was announced in March of this year.
Here is what marketers can expect to happen to First-Class, Periodicals, and Standard Mail pricing through 2024:
- There will be no rate increase in January 2022. Rates that went into effect August 29 of this year will remain in effect through at least June of 2022.
- Expect a rate adjustment in July 2022.
- Expect two rate adjustments in each year for 2023 and 2024.
The exact time of future adjustments remain to be set, though January/July of each calendar year seem likely target dates. As to expected rate increases, the process since 2006 has been that the rate is capped at the Consumer Price Index (CPI) + any unused rate increase percentages going back a number of years (Banked Authority). In other words, if the CPI data allows for a 2.1% price increase, and the USPS only increased rates 1.5%, the USPS can “bank” the remaining 0.6% and add it to a future rate adjustment.
As always, we will share all updates relevant to this information as they become available.