Will There Be A Postage Increase in 2015?

We have had several clients asking about 2015 postage and whether or not there will be a January increase.  The fact is, nobody knows for sure at this point.  Following are several possible scenarios.

The USPS has the option to file for another CPI (Consumer Price Index) rate increase which historically becomes effective in January. Based on the recent CPI trends and assuming CPI stays fairly steady, based on the formula requirements, the CPI increase will be between 1.3 – 1.5%.

However, the USPS does not have to increase postage in January. They could wait until later in 2015, which may allow CPI to increase and file for higher rates later in the year.

A critical issue is the exigent increase allowed in 2014 to counteract the loss of revenue due to the recession.  Once that revenue is recouped – about $3 billion  – presumably sometime in the third quarter, postage would be rolled back by about 4.3%.  The USPS is attempting to keep that increase in tact and the issue will most likely be decided by the PRC.

If the USPS loses their exigent surcharge appeal they might wait on the CPI filing, allowing CPI to climb and apply the increase at the same time as the exigent surcharge removal.

We will post more information on this blog as details emerge.

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