U.S. Postal Service chief warns of inflation impact -Breaking
[ad_1]
© Reuters. FILEPHOTO: Louis DeJoy from the United States Postal Service speaks to a House Oversight and Reform Committee Hearing on “Legislative Proposals To Put The US Postal Service onto Sustainable Financial Footing”, held at Capitol Hill in Washington DC.2/2
By David Shepardson
WASHINGTON (Reuters), – The U.S.Postmaster General Louis DeJoy said that while the agency works to curb losses, it is facing significant inflation costs. It also acknowledges that higher stamp prices could be affected by rising costs.
DeJoy revealed to Reuters, in a 90 minute interview on Wednesday night that the U.S. As it works to reduce $160 billion projected red ink costs over the next 10 years, USPS is experiencing higher prices.
DeJoy stated that inflation is much higher than what was predicted in the plan. DeJoy indicated that unplanned inflation will cost $1.8 billion more than we anticipated.
In the year ending Sept. 30, USPS reported https://about.usps.com/what/financials/annual-reports/fy2021.pdf?msclkid=20269dd6c27311ec9b8b3c650a4bc093 a net loss of $4.9 billion on revenue of $77.1 billion and $82 billion in expenses. The USPS will provide more information on inflation when they report financial results in May.
USPS had filed a notice with the Postal Regulatory Commission this month to raise first-class stamp prices from 58 cents up to 60 cents. This would bring overall First-Class Mail prices to 6.5%.
USPS stated that price increases were below 8.5% annually inflation.
DeJoy expressed concern about transportation costs and how inflation would impact prices and urged that they continue to hike them.
It’s a fact that we are raising our prices, and I am quite open about it. DeJoy explained that no matter how much cash I have tomorrow, three years later or in the future, there is still a plan to run out with a 650,000-person company.
Under legislation that President Joe Biden signed this month, USPS received $50 billion in financial assistance from Congress. DeJoy stated that the USPS still has to cut costs of $35 billion-40 billion billions and increase revenues by around $25 billion each year over a 10-year period to achieve its financial goals.
DeJoy stated, “The ball is in our court now — we have a lot to do.”
USPS, which has suffered from declining mail volumes while still having to reach a greater number of addresses every day, reported net losses in excess of $90 billion over the past seven years. It reported a $1.5 billion quarterly loss in February.
[ad_2]