div classBodysc17zpet90 cdBBJodivpBy David Shepardsonp
pWASHINGTON Reuters – U.S. Postmaster General Louis DeJoy says the agency is dealing with significant inflation costs as it works to stem losses, acknowledging higher costs will put further pressure on stamp prices.pdivdivdiv classBodysc17zpet90 cdBBJodiv
pDeJoy told Reuters in a 90minute interview late on Wednesday the U.S. Postal Service USPS is feeling the impact of higher costs as it works on its plan to eliminate 160 billion in projected red ink over 10 years.p
p“Inflation is significantly higher than we forecasted in the plan. I think were going to incur 1.8 billion more this year in unplanned inflation,” DeJoy said.p
pIn the year ending Sept. 30, USPS reported https:about.usps.comwhatfinancialsannualreportsfy2021.pdf？msclkid20269dd6c27311ec9b8b3c650a4bc093 a net loss of 4.9 billion on revenue of 77.1 billion and 82 billion in expenses. USPS is expected to offer more details on the inflation impacts when it reports financial results on May 5.p
pEarlier this month, USPS filed notice with the Postal Regulatory Commission to raise prices of firstclass mail stamps from 58 cents to 60 cents and raise overall FirstClass Mail prices approximately 6.5 – after hiking stamps by 3 cents in August.p
pUSPS noted the price hike was below the 8.5 annual inflation rate.p
pDeJoy, who cited issues like transportation and labor costs, was blunt about the anticipated impact of inflation and the need to keep hiking prices.p
p“I am pretty frank about it – we‘re raising prices. Whether I run out of cash tomorrow or three years from now I’ve still got a plan thats running out of cash with a 650,000person organization,” DeJoy said.p
pUSPS won about 50 billion in financial relief from Congress under legislation signed by President Joe Biden this month. DeJoy says he still needs to eliminate about 35 billion to 40 billion in costs and raise revenue by about 25 billion over a decade to meet financial targets.p
p“The ball‘s in our court now – we’ve got a lot of work to do,” DeJoy said.p
pStruggling with diminishing mail volumes despite having to deliver to a growing number of addresses, USPS has reported net losses of more than 90 billion since 2007. In February, it booked a quarterly net loss of 1.5 billion.p
p
pp Reporting by David Shepardson in Washington Editing by Matthew Lewisp
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