On April 9th, the USPS filed a Market Dominant Products rate increase to go into effect July 13, 2025. The USPS “Market Dominant” products, include First Class and Marketing Mail.
Overall, the rates will increase by an average of 7.4% for First Class and Marketing Mail, but as always, the details are important. Here are the increases for some common rates:
Rate | Percentage | ||
First Class | 7.4% | ||
Straight First-Class Letter | $.78 | 6.8% | |
Letter Mixed AADC | $.672 | 8.0% | |
Letter 5 Digit | $.593 | 8.8% | |
Straight First-Class Flat | $1.63 | 8.7% | |
Flat Mixed AADC | $1.488 | 9.82% | |
Flat 3 Digit | $1.235 | 9.1% | |
First Class Letter Canadian | $1.70 | 2.94% | |
Marketing Mail – Commercial | 7.4% | ||
Letter Mixed AADC | $.432 | 7.46% | |
Flat Mixed AADC | $1.185 | 13.83% |
The USPS has not yet filed their rate case for Competitive products (Priority Mail, Ground Advantage), but a filing is expected between Memorial Day and June 13.
The rates are broken down as follows:
Rate Increase Breakdown: | |
First Class – Overall | 7.4%* |
CPI-U | 2.9% |
Density Authority | 2.2% |
Retirement Authority | 2.3% |
Marketing Mail – Overall | 7.4%* |
CPI-U | 2.9% |
Density Authority | 2.2% |
Retirement Authority | 2.3% |
Percentages calculated after “Incentive” percentage subtracted (0.7% for First Class and 3.0% for marketing mail)
CPI-U: Increase in rates based on increase in Consumer Price Index (Urban)
Density-Based Rate Authority: Increase in rates to spread delivery costs over a lower mail volume
Retirement-Based Rate Authority: Increase in rates to spread retirement costs over a lower mail
volume
Add’l Rate Authority for Non-Compensatory Classes: Increase for products that do not yet cover
their costs (Periodicals)
Banked: Rate authority not used in a previous rate case