In May 2021, the United States Postal Services filed a notice with the Postal Regulatory Commission (PRC) requesting an increase on most types of mail. Although the proposed new rates are yet to be reviewed by the PRC, the requested changes are in accordance with approvals made by the Commission in 2020. The price changes will result in an overall average rate increase of almost 6.9% and are expected to take effect on August 29, 2021.

Increases look as follows:

  • Certified Mail is increasing from $3.60 to $3.75 – a $0.15 increase
  • Registered Mail is increasing from $12.90 to $13.75 – a $0.85 increase
  • Media Mail rates will increase by an average of 10.865%

A complete Postal Service price filings with all prices can be downloaded here.

The latest rate increase would be the second one this year and is higher than any previous postal rate hikes. Formerly, postage rates typically escalated with the rate of inflation, but in November last year, the PRC made changes allowing the USPS to set higher, above Consumer Price Index (CPI) rates for “market dominant” services like first-class mail.

The increased pricing flexibility afforded to the USPS is a critical factor to long-term postal reform and growing revenue. In accordance with the postal service’s Delivering for America plan, the higher rate authority will further enable them to accomplish break-even operating performance and reverse a projected $160 billion in operating losses over the next decade. “By implementing the full breadth of this plan, within three years we can begin to operate on a financially self-sustaining basis and improve service performance dramatically by delivering 95 percent of all mail and packages on time, pursuant to achievable delivery standards.” – Postmaster General and Chief Executive Officer, Louis DeJoy.

As can be expected, the rate increase has been met with widespread negative public sentiment and warnings that USPS will unintentionally expedite the decline in mail volumes. The postal service’s 10-year plan is regarded by many as one that will diminish delivery standards while raising prices significantly. These postal rate increases are almost equal to the past five years of increases combined and many mass mail senders have already challenged the price hike that will most certainly adversely affect their businesses.

One of the ways we suggest saving on postage is to review the USPS Promotions calendar for 2021. More here: Currently running from the period of July 1-December 31, 2021  the Personalized Color Transpromo Promotion incorporates marketing messages that use color, dynamic variable print, and personalization. By using color messaging in bills and statements, business mailers can enhance the value of First-Class Mail and foster a better connection and response from customers. This promotion can help you have as much as 2% on your overall first-class postage till December.