Is There Light at the End of the Postal Tunnel?

We’ll all be in a learning curve on how the new rate-change procedures will work. But plan for a consumer price index (CPI)-based rate increase in the 3 percent range in May or June of 2008, followed by annual CPI-based increases in May or June in future years. This being said, the USPS does have the ability to raise rates of different types of mail within the same mail classification. But the average for the whole class can’t exceed the CPI cap. For example, flats could receive a slightly higher than CPI increase while the rest of the class received a lower than CPI increase, such as a 3 percent to 4 percent increase for flats, while other mail types within the class receive a 2 percent to 2.5 percent increase.