2016 Postage Rate Decrease

As of 4/10/2016, the USPS has decreased First class postage rates in an entirely unprecedented move.  It has been 97 years since the USPS last reduced rates and we do not believe this will happen again.   The USPS finds itself in this position as a result of a loophole from last year’s rate case and change that required this roll-back once they had collected 4.6 billion in surcharges from last year’s change.  While the detail of the lowered rates can be found by clicking this link, the bottom line is first class rates have been reduced by an average of $0.02.

The following quote from Postmaster General and CEO Megan J. Brennan summarizes the USPS’ position on this decrease. “Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition,” said Brennan.  While these new rates will stay in place until at least next year – we feel strong when the next change is made (planned for January 2017), we’ll see at least an increase equal to the current reduction, actually reversing the 4/10/16 decrease.  We also fear there could be an additional increase by as much as an additional $0.005 – $0.01.