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Authored by Mike Shedlock via MishTalk.com,

The post office expected to make money this year. It did not come close. Let’s investigate why…

Postmaster Blames Inflation

CNN reports the US Postal Service lost $6.5 billion last year. It predicted it would break even.

Hoot of the Day

The cost of ink and paper has risen so much that marketers are sending less junk mail.

Less junk mail is the first benefit to inflation that I have come across. But it created a $920 million hole in post office revenue.

Why the post office expected to make a profit is a mystery. The Postal Service reported net income of $56 billion in the previous fiscal year but that was primarily due to the non-cash gain of nearly $57 billion from 2022 legislation that changed the way it accounted for its retiree health care expenses.

Other than a one time accounting gimmick, the Post Office never came close to making money.

CPI Unchanged Thanks to Decline in Energy, but Rent Jumps 0.5 Percent

CPI month-over-month data from the BLS, chart by Mish

A 2.5 percent decline in energy smoothed the CPI. But for the 27th straight month, the cost of rent rose at least 0.4 percent.

For discussion, please see CPI Unchanged Thanks to Decline in Energy, but Rent Jumps 0.5 Percent

Talk of a tame CPI report this month is entirely an energy mirage and easy year-over-year comparisons. Food is a particular case in point.

Price Change vs Two Years Ago

• Food at Home: 14.8%

• Food Away from Home: 14.4%

• Meat, Fish, Eggs: 8.4%

• Dairy: 15.1%

• Cereals: 20.7%

• Fruits and Vegetables: 10.6%

For further discussion of food prices, please see The Average Increase in the Price of Food Every Month for 32 Months is 0.6 Percent