Rate increases sought

Nation's Business, August, 1997 by Steve Bates

The U.S. Postal Service announced July 1 that it will seek approval to boost a variety of the rates it charges for commercial mail such as publications and advertisements and to raise the price of a first-class stamp to 33 cents. However, Americans could mail bills for 30 cents using prepaid envelopes supplied by participating businesses.

On average, rates for all mail users would increase 4.5 percent. Postal officials said that on average, priority-package rates would increase 6.7 percent, local newspapers would cost 3.5 percent more to mail, and magazine rates would rise 5.4 percent. Fees for advertising mail and post-office boxes also would go up.

If approved by the independent U.S. Postal Rate Commission, the changes--which could not take effect until next spring--would generate an additional $2.4 billion a year for the Postal Service. Postal officials pledged not to seek further across-the-board rate increases for two years.