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Postal-Overhaul Bill Aims to Stabilize Rates


The Wall Street Journal:

The U. S. Postal Service generally will be barred from raising postage rates beyond the rate of inflation for the next decade under an overhaul passed by Congress.

The new law — the first major changes to the service in more than three decades — aims to stabilize rates for households and bulk mailers and to help the service cope with the challenges of the Internet and compete against delivery companies such as FedEx Corp. and United Parcel Service Inc.

The changes should make the Postal Service more attractive to catalog companies and other bulk mailers, by letting them plan costs more accurately.

For consumers, the changes could bring more frequent rate increases, though they would rarely be as large as some recent ones, including an average 8.5% jump proposed in May that would be the biggest price increase in 12 years if it takes effect. Under that, the cost of a first-class postage stamp is supposed to rise to 42 cents in May from the current 39 cents.

Photo by ronnieb.

   

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