The chart above shows how the Postal Regulatory Commission (PRC) reports the Consumer Price Index (CPI) cap for the latest 12 months of inflation in the purple bar separately from the “Interim Unused Rate Adjustment Authority” in the orange bar. The unused authority results from the USPS deciding to delay its next annual price increase beyond the minimum 12 months allowed. They did this primarily to wait and see what the U.S. Court of Appeals rules on the timing and amount of the exigent surcharge. We all continue to wait for that decision. It is important to note that the next CPI-based Postal Service price increase will most likely be the combined total of these two numbers which is the rate adjustment authority that we focus on. While the Postal Service would not be required to use the unused rate authority, we think it most likely will, as it has advocated above-CPI pricing increases for some time now.

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