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BtoB

USPS board agrees to rate increase, effective Jan. 8

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Washington, D.C.—The board of governors of the U.S. Postal Service announced Tuesday that it has agreed to the Postal Rate Commission’s recommendation to increase postal rates 5.4%. The new rates go into effect Jan. 8, 2006.

It had been widely speculated that rates would not be raised until at least Jan. 16.

The Direct Marketing Association, whose members are heavy users of mail, expressed disappointment with the date set by the USPS board.

Jerry Cerasale, the DMA’s senior VP-government affairs, said in a statement: “This breaks from a past tradition of giving postal customers at least 60 days to prepare and, falling as it does over the busy holiday season, will make it especially difficult for most marketers."

The DMA also said it was disappointed the board did not address its concerns regarding the recommended increases for media mail, which were more than double the figure originally proposed.

—Carol Krol

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