USPS Postage Forecast for 2027

In June 2026 USPS was forecasting an increase of approximately 7.8% for July 2027.  Since that time they lowered their July 2027 estimates to 6.2% a full 1.6% less.  The decrease is due to better than original forecasted Marketing Mail volumes which will lower the allowable density factor and improved inflationary factors.  

The big wrench in the plan is the USPS request to the PRC to update their price change cadence from July to January, starting with this January 2027.  In order for that to happen the PRC must first approve the waiver USPS has asked for so they can estimate the annual density calculation.  Traditionally the density factor is first announced by USPS in the Annual Compliance report at the end of December, and after PRC review in the Annual Compliance Determination that happens at the end of March the density factor is confirmed for a July increase.  If approval is received the forward guidance is 2.6% for density and 1.8% for the six-months of CPI that could be used, totaling an estimate of 4.4%. If allowed, then there will be no July increase in 2027. 

Future Rate Authority Estimates With Current Regulations

The timelines to watch are:

• • Expected by the end of August 2026
    • PRC will approve or deny the USPS petition 

• If approved

• • Early October 2026 
    • Price filing would be announced with rates
      • Included:  6 months of rolling CPI and an estimated density factor.
  • January 17th, 2027 would be the implementation date for price change.
    • This then would be the one allowable Market Dominant price change for FY27 

• If the PRC doesn’t approve the USPS request in August.

• • December 31st, 2026 
    • Annual Compliance Report (ACR) will come out with all cost avoidance figures.

• March 31st, 2027

• • • After PRC review of the ACR, the Annual Compliance Determination (ACD)  report will come out confirming the density calculation.  
  • Early April 2027
    • USPS would file for a July 2027 Market Dominant Rate change.
      • Included: 12 months of rolling CPI and a density factor.
        • All based on current regulations.

• July 18th, 2027

• • Price change would be implemented. 

We will keep you informed of any developments impacting the timing for a 2027 price change.