Deutsche Post criticizes regulatory proposal allowing company only moderate price increases in 2012; regulator says decision based on company's ability to grow productivity by 0.6% in 2012, company counters by saying 0.6% target is 'way too high'

Lorena Madrigal

LOS ANGELES , October 20, 2011 (Industry Intelligence) – Deutsche Post AG criticized a proposal by German mail price regulator Bundesnetzagentur that will only allow the company to moderately increase prices next year, Dow Jones Newswires reported Oct. 19.

The price regulator, which uses inflation rates and productivity gains to regularly review and calculate a range for the company’s price increases, said it reached the decision because the company is capable of reaching a 0.6% growth in productivity in 2012.

Dirk Klasen, a spokesman for Deutsche Post said the 0.6% target was “way too high” considering volumes have decreased.

Although the company’s 2012 financial targets will not be affected by this proposal, Klasen said it might not look into increasing prices if the decision is not altered, adding the costs would outweigh the benefits.

The primary source of this article is Dow Jones Newswires, New York, on Oct. 19, 2011.

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