What is the appropriate pricing regime for the Postal Service?

This is the fourth topic in our "Five Elements of a Postal Solution" blog series. Link to last week's topic.
Link to today's recap.
Link to Thursday's blog by John Waller.
Link to Wednesday's blog by Jeff Colvin.
Link to Tuesday's blog by Jessica Lowrance.

Recapping the week - March 30, 2012

In the fourth week of our blog series, we asked three experts to give us their opinions on an appropriate pricing regime for the Postal Service.


Is the Price Right?

The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service's products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI).