Donahoe: U.S. Mailing Industry ‘Too Fragile’ for Major Rate Increase

The mail industry in the United States now appears to be “too fragile” for the U.S. Postal Service to raise its postal rates by above-inflation amounts, Postmaster General Patrick Donahoe said. Speaking at the latest quarterly meeting of the USPS with its major customers and industry associations, Donahoe declared that the Postal Service is dropping its legal battle with regulators to force a 5.6 percent rate increase.

Donahoe advised mailers that when it comes to future rate increases “plan on no more-than-CPI increases.”

This week’s Mailers Technical Advisory Committee meeting at USPS headquarters was dominated by the bombshell announcement