Predicted USPS Rate Changes

In early December, the Postal Service unofficially mentioned that they may possibly file for a CPI Rate increase on January 26, 2015. If approved, the increase would be implemented on April 26, 2015. On December 17th the Labor Department released the November CPI Index, which actually fell .3%. Even though CPI fell in November, it is still up about 1.3% since November 2013. The Alliance of Nonprofit Mailers stated that the current 15-month (number of months since the last USPS CPI increase filing) is 1.965%, which includes the .179% banked in unused rate adjustments. The December CPI index should be released by the end of next week, which will add another month of CPI adjustments to the USPS potential January rate filing.
The Postal Service and Mailing industry expected the Court of Appeals to rule on the Exigent Rollback Appeal by the end of 2014. However, the ruling has yet to be made, leaving 2015 rates very unpredictable.
Here are a few possible scenarios:

1. The USPS could forego the CPI rate filling in January, continue to bank the CPI adjustments, wait on the Exigent Appeal and file for new rates later in the year.
   • If the USPS loses the appeal, then it is speculated that they will wait until the Exigent Surcharge is removed before they file for new rates.
   • Otherwise, if they win the appeal, then they could file for the CPI increase at any point, which would probably be in April to go into effect in July.
2. The USPS could file for the CPI rate increase in January (estimated 2%) and if they lose the Exigent Appeal, then they will have to remove the surcharge (4.3%) later in 2015.

Unfortunately, there are too many factors to make an educated assumption on what the USPS is planning. With any luck, the Court of Appeals will making a ruling soon and we can get some clarity as to what the USPS will do to our postage rates and budgets in 2015.