News You Can Use.
Next USPS price increase expected in July 2027.
USPS Price Increases.
The USPS cannot raise prices whenever desired. Its regulator, the Postal Regulatory Commission (PRC), now limits the Postal Service to one price increase per year. Rate increases are generally based on inflation and density rate authority.
Density Rate Authority.
In addition to the inflation cap, USPS has another primary tool to adjust prices called “density rate authority.” The USPS must deliver mail to every address in the country, six days a week, no matter how much mail volume exists. When the number of addresses keeps growing but the amount of mail is shrinking, the cost of delivering each individual piece goes up. Density rate authority lets USPS capture this cost increase. It is calculated once a year from audited financial numbers, usually filed each December.
Recent News.
The USPS wanted to raise rates again in January 2027, to accelerate revenue generation and align price changes more closely with calendar year fiscal cycles ending in December. It asked the PRC for permission to use early, estimated numbers (instead of waiting for final audited figures) to implement a rate increase that combined both the inflation cap and this extra density boost.
On August 21, the PRC denied the USPS’ request to calculate and apply early “density” rate authority for January 2027 because the USPS failed to show sufficient cause to use estimated data.
What’s Next.
The USPS can still raise rates in January 2027, but for now, it’s limited to the standard inflation-based increase, not the larger, density-boosted adjustment. So, if a January adjustment happens, expect it to be smaller than recent increases because it will be limited to the rate of inflation.
If that does not take place, expect the next increase to take place in July 2027 with “current” estimates as high as 6% to 7% (this a blended average for all Market Dominant Products such as Periodicals and Marketing Mail).
How We Can Help.
Our team is ready to help you with mailing strategies that optimize postage costs and response. Stay tuned for the release of our 2027 USPS Postal Promotions & Incentives Guide.