CONSUMER AFFAIRS: Postage rate increase

2014-01-10T09:26:00Z 2014-01-10T18:05:09Z CONSUMER AFFAIRS: Postage rate increaseJoseph Pellicciotti Times Business Columnist nwitimes.com
January 10, 2014 9:26 am  • 

On Dec. 24, the Postal Regulatory Commission approved a U.S. Postal Service request for an exigent price increase.

The increase is designed to offset losses suffered as a result of the Great Recession of 2008–09.

The approved increase is designed to be temporary, since the PRC stated in its decision, “allowing the rates to remain in effect indefinitely would result in over-recovery of the financial impact of the Great Recession on the Postal Service.”

The PRC noted “the rates proposed by the Postal Service will enable it to recover the lost contribution in less than two years,” and it ordered the Postal Service to come up with a plan for ending the increase.

While it is unclear if the increase will end within two years or at another time ordered by the PRC, it will be around for a while.

Bottom line: The cost to mail items through the U.S. Postal Service, including the cost of mailing first-class letters, will increase on Jan. 26.

The rate increase is expected to send the cost of mailing a first-class letter from 46 cents to 49 cents.

If you mail many letters, it may be a good time to consider stocking up on forever stamps at current cost, before the January 26 increase hits.

To read the entire PRC decision, go to http://www.prc.gov/Docs/88/88645/Order_1926.pdf.

Opinions are solely the writer's. Pellicciotti is an Indiana University Northwest faculty member and administrator. The article is for informational purposes only and not intended as specific advice. Consult your professional adviser before taking action. Author does not endorse/guarantee content within websites.

Copyright 2014 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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