Seeking to put postal customers at ease, Postmaster General Jack Potter late Thursday said the U.S. Postal Service would not raise prices for market-dominant products next year.
Those products include standard mail, first class mail, periodicals and single-piece parcel post.
In a letter circulating around the mailing community, Potter sought to ease fears of higher rates at a time when mail volume is plunging.
At the same time, this action could be a response to stagnating consumer prices: the Postal Accountability and Enhancement Act of 2006 mandated that postage hikes be tied to the Consumer Price Index.
Similarly, it was announced Thursday that cost of living adjustments to Social Security benefits, which are also tied to inflation, are not going up either.
“Many of you have expressed concerns regarding mailing costs for 2010. The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10%,” Potter wrote.
“As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.
“The Postal Service will not increase prices for market dominant products in calendar year 2010.
“Simply stated, there will not be a price increase for market dominant products.
“This is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry,” Potter continued.
“While increasing prices might have generated revenue for the postal service in the short term, the long term effect could drive additional mail out of the system. We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace,” he wrote.
But the PMG did leave open the door for price increases in its competitive products such as priority mail, express mail, parcel select and most international products.
Potter said he expects to announce a decision in November.
