Here’s what we know so far about the impending 2021 postage increases:
The U.S. Postal Service is expected to file its proposed postage rate increases at the Postal Regulatory Commission before October 13, which is the release date for the latest Consumer Price Index (CPI) data.
The current CPI price cap is 1.458 percent, and applies to each class of mail. Individual rate cells may be higher or lower.
According to Steve Kearney, Executive Director of the Alliance of Nonprofit Mailers, the USPS has unused price cap capacity they could potentially add to the 1.458 percent cap in certain classes:
- First Class Mail: 0.385 percent increase
- USPS Marketing Mail (includes Nonprofit Mail): 0.049 percent increase
- Periodicals: 0.000 percent increase
- Package Services: 0.008 percent increase
- Special Services: 0.007 percent increase
The 2021 rate increases may go into effect on January 31, 2021 which is the last Sunday of the month. However, the rate increases could go into effect a week earlier, on January 24, as there are five Sundays in that month. We will monitor this timing.
The PRC may also order new surcharges for the USPS in 2021; the amount and timing are uncertain.
As you prepare your 2021 mailing plan, you can download 2020 Postage Rate Chart from our colleagues at PMG and consider using a 5 percent increase for First Class and a 2 percent increase for Marketing (Third Class and Nonprofit) mail as a baseline for your budget.
We will continue to keep you informed of the USPS rate review process and will update our Postage Rate Chart once the new rates are approved.
In the meantime, if you have any questions as you prepare your 2021 postage budgets, please contact us. We know it’s complicated, and we’re eager to help!