Business Week has reported that "The Postal Service is using a legal provision that lets it propose rate increases greater than the rate of inflation under "exceptional or extraordinary" circumstances, Kearney said. The average proposed rate increase is 5.6 percent, compared with inflation of 0.6 percent, he said. Mailers of catalogs, magazines and newspapers are prepared to fight the rate increase, James Cregan, executive vice president of government affairs for the Magazine Publishers of America, said in an interview before the announcement. The group's members include Time Warner Inc. and Meredith Corp. Wrong On Law' "The Postal Service is wrong on the law, wrong on the economics, and wrong as a matter of public policy," Cregan said. The increase will drive away profitable mail, heading the service toward a "death spiral," Cregan said." Read the full story here.
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