On February 25, 2016 the USPS announced that postage rates will be decreasing effective April 10, 2016.

Why are the postage rates decreasing?

The postage rates change effective January 2013 was part normal annual CPI-based increase and part an exigent rate increase. The USPS filed the exigent increase due to the lagging economy coupled with an unexpected decline in mail volume. The USPS was only allowed to implement the exigent rate increase until its projected losses were recouped, which the USPS targets as April 10, 2016.

 

Will the USPS have a CPI-based rate increase in 2016?

It is unclear if the USPS will seek a CPI-based rate increase for 2016. CPI for 2015 increased only about 1%, so the USPS could increase postage rates by an average of 1%. However, implementing a CPI-based rate increase immediately following a rate decrease would anger many in the mailing community – especially those that develop and need to upload new software as a result of any postal rates change.

 

How much are the postage rates decreasing in April?

The postal rates are decreasing an average of 4.1% for business mailers. Following are some highlights of the new rates:

Type of Postage Price
First Class Forever Stamp

47 cents

Additional Ounce 21 cents
First Class Metered Full Rate

46.5 cents

Postcard Full Rate

34 cents


Do I need to prepare my mail any differently to take advantage of these decreased rates?
The good news is that you do not need to change the way your mail is prepared to take advantage of the new rates. All you need to do is to meter at the new rates starting April 10th!

How can I save even more on my mailing costs? This is a very individualized question and an analysis of your mailings is the best place to start. Click here for a no obligation mailing analysis with CMS.