Postal Alert: Magazines and Catalogs

And It’s Not Over Yet

While still choking over the current round of postal rate increases, quietly overlooked is the fact that the just-passed reform legislation which limits future postal rate increases to the Consumer Price Index (CPI) rate of inflation does not take effect immediately. Another request for a postal rate increase can be initiated under the old procedures and rules until December 2007. That still-available under-the-old-rules request is not capped by the CPI. James C. Miller III, Chairman of the USPS Board of Governors, in a March 19th teleconference said that he “would like to see one more rate case before the new regime begins.” Some analysts believe that the current hue and cry over the postal situation will make an old rules rate increase unlikely. However, others believe that the lure of avoiding the CPI cap will be irresistible. PrintCom believes that there will be another rate change under the old rules touted by the post office as an adjustment to stimulate mailers’ efficiency. Read: By early 2009 postal rates for at lease some classes of mail will have increased again at a rate greater than the CPI.