We fully expect there to be an increase in postage rates in 2017 as the USPS has already announced a CPI (Consumer Price Index) increase on January 22, 2017. At the minimum, we suggest adding 1% to allow for the CPI increase which has been hovering a little under 1%.
In early 2016, as you know, postage rates went down as the exigent rate increase was removed. A committee in the House of Representatives introduced a postal reform bill earlier this year that, if passed by both the House and the Senate, could roll back half of the 4.3% decrease. This would result in an increase of 2.15% in addition to the CPI increase.
While it’s impossible to know what Congress will do during the Lame Duck session in December and what the Postal Regulatory Commission (PRC) will approve or deny, adjusting your postal budgets for anywhere from 1% to 3.15% will add a layer of security so that there are no surprises.