Controllable losses at the US Postal Service increased by US $2 billion in the financial year to 2022. While revenues grew by 2%, inflationary pressures significantly increased the postal operator’s costs.

Mail and volumes fell in a large part due to the price increases instituted by the US Postal Service. At the same time, it was given a one-time cash relief injection by the federal government of $56 billion as part of the Postal Service Reform Act.

Postal officials predict that overall losses will increase next year to as much as $4 billion. Revenues are set to increase due to more price hikes, but the drop in volumes due to falling consumer confidence is set to add to the postal operator’s woes.

“Over the last two years we have stabilised our operations, evolved our products, improved our service, strengthened our balance sheet, halved our projected losses and motivated our employees to join us in this transformation,” Postmaster General Louis DeJoy said.