Postal Service may get stamp-hike latitude

WASHINGTON — Seeking to bolster the ailing Postal Service, federal regulators moved Friday to allow bigger jumps to stamp prices beyond the rate of inflation, a move that could eventually add millions more dollars to companies’ shipping rates.

The Postal Regulatory Commission announced the decision as part of a 10-year review of stamp rates. It concluded that the post office’s mounting red ink from declining mail volume and costs from its pension and health-care obligations hamper the ability to provide reliable mail and package service.

The commission’s proposal would give the Postal Service freedom to raise the price of its first-class stamp, now at 49 cents, by an additional 2 percent above the rate of inflation to help avoid bankruptcy and make needed multibilliondollar investments, such as in upgraded information technology.

That could translate to an increase of up to a few cents each year, depending on rates of inflation.

The prospect of higher postal prices has raised the ire of several businesses, which could pay millions more for sending items like prescription drugs and magazines and pass costs onto consumers. Groups including eBay, Netflix and the Greeting Card Association argued, in part, that Congress had intended to keep a rate cap in place based on a law passed in 2006.

The regulators’ plan now will go through public comment, taking effect next spring unless there is substantial pressure from Congress, businesses or the public.