facebook
twitter
rss
account
search
search
 

Postage increase limited to inflation rate

Oct. 1, 2010 at 10:00 AM   |   Comments

WASHINGTON, Oct. 1 (UPI) -- The U.S. Postal Service cannot raise rates beyond the rate of inflation, the Postal Regulatory Commission said.

The Postal Service asked to raise postage rates on first-class mail, periodicals and other services above the inflation rate in July, The Washington Post reported.

An increase above the inflation rate is permitted in exigent, or urgently necessary cases, but the commission said a poor business model causes the Postal Service's problems.

In a ruling Thursday, the commission said while the recession and recent declines in mail volume could justify an increase, the Postal Service's long-term structural problems are the cause of recent shortfalls.

The agency did leave an opening for a larger rate increase if the Postal Service used different arguments, the newspaper said.

"The Postal Service didn't make the case, didn't make the connection between the problems they suffered during the recession and the revenue they were requesting," Postal Regulatory Commission Chairman Ruth Y. Goldway said.

The Postal Service is expected to announce billions of dollars in losses for fiscal 2010 and ends the year with about $2 billion in available cash and credit, the report said.

Postmaster General John E. Potter expressed disappointment with the ruling and called the postal service "a viable business."

© 2010 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
School accused of using girl as rape bait; girl gets attacked School accused of using girl as rape bait; girl gets attacked
2
Man who raped pit bull puppy sentenced to five years in prison Man who raped pit bull puppy sentenced to five years in prison
3
40 Islamic State fighters killed in U.S. air strike 40 Islamic State fighters killed in U.S. air strike
4
Man beaten to death with barbell in San Francisco gym Man beaten to death with barbell in San Francisco gym
5
Bill Clinton hints he expects to be grandfather by first of October Bill Clinton hints he expects to be grandfather by first of October
Trending News
Video
x
Feedback