Earlier this month, the Postal Service outlined the content of the price increase it filed with the Postal Regulatory Commission.
Overall, the increase will average 5.6%.
First-Class Mail will rise 5.4% on average. The price for retail letters and cards will increase two cents each; presorted letter prices will increase an average of 2.1 cents, with no change in the additional ounce rate. FCM presorted flats will jump about 12%, on average, while a new rate band for FCM parcels will apply the same price through three ounces.
Standard Mail prices will increase an average of 5.6%. The increase for letters and flats will be about 5.0% and 5.1%, respectively, while CR will go up 4.9%, and HD/Saturation letters and flats/parcels will increase by 4.8% and 4.4%, respectively. STD parcels will jump 23.3%, however, because they currently do not cover their costs. Other classification changes were as well.
Periodicals will increase by 8%, less than enough to move them to profitability.
Package Services will increase 7%, except for BPM flats that will rise only 5%.
Special Services will go up an average of 5.2%.
The Postal Service acknowledges the price increase will impact customers, but expects the total net benefit of the higher prices to be about $2.3 billion, an amount that will reduce the agency’s anticipated FY2011 loss to about $4.7 billion.
The formal filing was completed on July 6th, and the PRC has 90 days to respond (i.e., by October 4). Implementation is planned for January 2, 2011.