U.S. Postal Service chief warns of inflation impact
WASHINGTON, April 22 (Reuters) – U.S. Postmaster General Louis DeJoy says the agency is dealing with significant inflation costs as it works to stem losses, acknowledging higher costs will put further pressure on stamp prices.
DeJoy told Reuters in a 90-minute interview late on Wednesday the U.S. Postal Service (USPS) is feeling the impact of higher costs as it works on its plan to eliminate $160 billion in projected red ink over 10 years.
“Inflation is significantly higher than we forecasted in the plan. I think we’re going to incur $1.8 billion more this year in unplanned inflation,” DeJoy said.
In the year ending Sept. 30, USPS reported a net loss of $4.9 billion on revenue of $77.1 billion and $82 billion in expenses. USPS is expected to offer more details on the inflation impacts when it reports financial results on May 5.