January 21, 2015
The Postal Service decided to take a safer, bird-in-the-hand decision to file its latest Consumer Price Index (CPI) increase right before the close of business on Thursday, January 15. The timing is interesting because the next morning at 8:30 am another monthly CPI number was released by the Bureau of Labor Statistics that would have raised USPS pricing authority to 2.027% from the 1.966% it filed. But as we reported in our December 10 Alliance Report, word had slipped out that Postal Service staff had begun preparing a potential rate case for April 26 implementation. They used the CPI cap that ran through the December 17 release of the November CPI in their January 15 filing.
There are several possible reasons for the USPS filing the case now rather than later:
Still, with an implementation near the end of April we could have two rate changes (a 1.966% increase and a 4.3% decrease) within four or five months of each other.
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