The U.S. Postal Service proposed higher rates that would raise $2.4 billion in additional annual revenue. Rates overall would go up 4.5%. Rates for commercial magazines would go up 5.4% while rates for local newspapers would climb 3.5%. Average third-class advertising rates would increase 4.1% before pre-sort discounts. First-class letter rates would climb to 33 cents from 32 cents, but USPS proposed a new discounted rate of 30 cents for machine-sortable business mail such as bill payments. The proposal, which now faces Postal Rate Commission review, is unlikely to take effect before next May.
Copyright July 1997, Crain Communications Inc.