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Postal Service files for 5.4% rate increase

Published on .

Washington, D.C.—As expected, the U.S. Postal Service on Friday filed a request for an across-the-board 5.4% rate increase with the Postal Rate Commission.

The USPS said the decision to seek an increase was based on the requirement that it establish a $3.1 billion escrow fund.

"The Postal Service is asking all parties to agree to the increase in order to avoid protracted rate hearings that would delay the effective date beyond Jan. 1, 2006," said David Straus, a partner at Thompson Coburn and American Business Media’s Washington counsel. "Most will, but some may not."

The 5.4% increase would be spread over all classes of mail and special services. The last postal increase took effect in June 2002.

—Carol Krol

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