U.S. Postal Service can’t lick inflation, seeks to hike stamp prices again

By David Shepardson

WASHINGTON (Reuters) -Surging inflation will immediate the U.S. Postal Service to hunt greater costs for stamps and different providers in January, simply 5 months after its latest hike, because it continues to lose cash.

USPS raised costs in July by about 6.5%, together with growing the value of a first-class stamp from 58 cents to 60 cents after mountaineering stamps by 3 cents in August 2021.

U.S. Postmaster Basic Louis DeJoy mentioned Tuesday inflation would trigger prices to exceed its 2022 funds plan “by nicely over $1 billion.” DeJoy mentioned he plans to advocate to the Postal Board of Governors that USPS elevate costs once more in January.

DeJoy has mentioned USPS for years had didn’t cost sufficient for bundle and mail supply.

USPS on Tuesday booked a onetime, non-cash good thing about $59.6 billion after President Joe Biden signed monetary reduction laws into regulation. It reported an adjusted lack of $459 million for the quarter, in comparison with an adjusted lack of $41 million for a similar quarter final yr.

DeJoy mentioned the Postal Service is working to deal with some hiring points however is having success in most areas because it has boosted full-time everlasting workers.

“This can allow us to rely much less on seasonal staff, which we imagine will show troublesome to rent this season,” DeJoy mentioned. “We’re nonetheless having hassle in hiring new letter carriers, particularly in rural communities. We’re using new recruiting techniques.”

Scuffling with diminishing mail volumes regardless of having to ship to a rising variety of addresses, the USPS earlier than Tuesday had reported web losses of greater than $90 billion since 2007. The invoice Biden signed in April repealed the USPS’s requirement that it yearly prepay future retiree well being advantages and canceled all overdue prefunding obligations.

DeJoy launched a March 2021 reform plan that goals to eradicate $160 billion in predicted losses over the subsequent decade.

DeJoy mentioned regardless of reforms losses would nonetheless attain $60 billion to $70 billion over the subsequent 10 years — and USPS should tackle these losses.

USPS can be set to obtain $3 billion from Congress to spice up electrical car and charging purchases. Final month, USPS mentioned it plans to purchase no less than 25,000 EVs – greater than twice its prior estimate.

(Reporting by David Shepardson; Enhancing by Jonathan Oatis and Lisa Shumaker)