Following review from the Postal Regulatory Commission, the U.S. Postal Service’s price hike that is set to take effect next month will move forward. Though the price increase was legally sound, the commission expressed concerns over the agency’s rapid cost increases.
“Although the price adjustments proposed in this proceeding are consistent with applicable law and the commission has no legal basis to reject the proposed changes, the commission is concerned, given the current state of affairs, that the Postal Service’s proposal does not reflect reasoned consideration of the potential widespread effects of its proposal, is not prudent, and is not consistent with the best interests of all stakeholders,” the commission wrote in Order No. 7155, which was published on May 30.
The commission went on to urge USPS to use “business judgment” and not continue to increase rates to the maximum permitted by law due to historic declines in performance and efficiency, pending effects from the January 2024 rate increases and increases occurring at a more frequent rate than in the past
