The U.S. Postal Service will announce new mail rates on Tuesday in a bid to generate more revenue after posting a massive loss in the last fiscal year.
Rates for first-class and other types of mail will rise, the Associated Press reported. The increases are subject to review by the independent Postal Regulatory Commission.
The Postal Service, which receives no tax funds to cover operations, is legally limited to keep rate increases within the rate of inflation. The agency is allowed to seek higher increases in unusual circumstances only.
Considering that the Postal Service lost $3.8 billion last fiscal year, even as it cut 40,000 full-time positions, this may be such a circumstance.
"The projections going forward are not bright," Postmaster General John Potter said in March. But he added: "All is not lost. . . . We can right this ship."
Post Office to Announce Rate Increases as Losses Mount