U.S. Postal Service Proposes Price Increases

The U.S. Postal Service has proposed increasing the prices to help close a projected $7 billion budget shortfall in 2011 Fiscal Year. Under the proposal the cost of a First-Class stamp 2 cents to 46 cents. Periodicals will see an 8 percent increase, catalogs rates will increase 5.1 percent and Standard Mail will see a 23 percent increase.

The increases would go into effect January 2, 2011. The Postal Service says the price increases will generate $2.3 billion for the last three quarters of the 2011 Fiscal Year.

The Affordable Mail Alliance, a coalition of industry associations and Postal customers is lobbying the Postal Regulatory Commission to reject the prices increases. Jerry Cerasale, senior vice president, Government Affairs at DMA, and spokesperson for the Affordable Mail Alliance issued a statement saying, “Rather than gouging its customers with rate increases that are 10 times the rate permissible by la

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