USPS Files Market-Dominant Rate Changes
On October 7, the United States Postal Service filed notice with the Postal Regulatory Commission (PRC) of price changes to take effect January 22, 2023. The new rates include a three-cent increase in the price of a First-Class Mail Forever stamp from 60 cents to 63 cents. If favorably reviewed by the commission, the proposed increases will raise First-Class Mail prices approximately 4.2 percent to offset the rise in inflation. The price changes have been approved by the Governors of the U.S. Postal Service.
As USPS signaled last year, it is moving to a semi-annual price adjustment cycle for market-dominant products, which are subject to an inflationary-based price cap with added authority above the cap for certain reasons.
Only a handful of the Postal Service's international products are market-dominant, with the most notable being First Class Mail International (FCMI). The USPS plans to increase the FCMI letter rate and postcards to $1.45 from the current $1.40, assuming PRC approves the proposal. Overall, Outbound Single-Piece First-Class Mail International (FCMI) prices are increasing 3.694 percent, including increases on Single-Piece FCMI letters, cards, and flats, Inbound International Letter price is set by the Universal Postal Union's terminal dues system. "Inbound Letter Post terminal dues for 2023 are calculated to be increasing by 6.131 percent compared to current rates," the filing says. Competitive products, which includes the commercial international products used by IMAG members, are not affected by this filing. Competitive product prices will also increase on January 22, 2023, but those changes will be made in a separate filing with the PRC, expected to be filed shortly after the November 9 Board of Governors meeting.
To read the USPS announcement of the increase, click here.
To read the full market-dominant price change filing at the PRC, click here.