Postal Regulators Lay Out New Proposal To Enable Larger USPS Rate Hikes

The U.S. Postal Service could soon raise prices in a way that more closely follows increases in its costs, as the mailing agency’s regulators proposed an overhaul to the existing rate-setting system it has deemed inadequate.

The Postal Regulatory Commission still would not give USPS full authority to set its own prices—as agency management has requested—in its revised notice of proposed rulemaking issued on Thursday. The updated proposal follows an initial one from the commission in 2017 that found the current system tying price increases to inflation to be overly restrictive for the cash-strapped Postal Service. The commission originally suggested a static price cap of 2% above inflation, plus an additional 1% if it met certain performance metrics.

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Eric Katz