The U.S. Postal Service (USPS) is betting inflation is going to soar through 2024. It also believes that it should be able to bank inflation adjustments faster than Social Security recipients and members of the Armed Forces.
In an opaque filing with the Postal Regulatory Commission (PRC) on September 15, USPS says it will now increase prices every six months on market dominant products (translation: mail products, which only it can legally provide). While USPS incurs time and expense in making rate filings with the PRC, this is far less of a concern in an environment of higher inflation.
In 2020, inflation was 1.2 percent. For the past 12 months, it is 5.3 percent. If we assume that inflation stays at its current rates, USPS can increase mail prices at least 2.65 percent every six months.
