Postal Increases Under Rate of Inflation

The USPS has been struggling. It reported that mail volume was down 3 percent in the first quarter of fiscal 2008. First Class volume was down 3.9 percent, while Standard Mail decreased 2.6 percent.

H. Glen Walker, USPS executive vice president and CFO, attributed declining volume to “disturbing trends” in the overall U.S. economy. Postmaster General John Potter noted that while revenue was higher year-over-year, it is $500 million less than expected given last May’s price increase.