January Postal Rate Hike Denied

The independent panel that oversees the U.S. Postal Service has denied the agency’s request to increase the cost of mailing a letter by two cents bringing the total to 46 cents.

In July, the Postal Service proposed raising first-class postage from 44 cents to 46 cents as part of a strategy for dealing with their worsening financial crisis situation. The Postal Service lost $3.8 billion last year, and the agency has been seeking other rate increases as well, including higher fees for periodicals, post cards and parcels. The new rates would have taken effect Jan. 2, 2011.

The Postal Rate Commission’s vote to deny the rate request was unanimous on the five-member commission. The decision was applauded by the Affordable Mail Alliance, a coalition of postal customers including consumer groups, small business, charities, utilities, national retailers and banks. ◆