The U.S. Postal Service will have to roll back a portion of its largest rate increase in 11 years after a federal court ruled that the higher postage prices in place since January 2014 can’t be permanent — but when and by how much was unclear.
Postal regulators had agreed to a 3-cent emergency postage hike for first-class letters, to 49 cents from 46 cents, after the Postal Service said it needed to recoup billions of dollars it lost during the recession. The 4.3 percent hike came on top of the customary 1.7 percent that postage prices have risen to adjust for inflation.
But regulators set a cap on the amount of revenue USPS could recoup with the higher prices. The cap will be reached this summer.
The U.S. Court of Appeals for the District of Columbia Circuit ruled that the emergency rates should not become permanent. The Associated Press
