Falling energy prices mean homeowners and businesses have more money to spend on other things. Since June 2014, decreases in crude oil and natural gas prices have reduced energy costs, which are 1.2% less, according to U.S. Bureau of Labor Statistics (BLS.)
The overall index edged up 0.6% in March as real crude oil prices rose 18.1%, while natural gas prices continued to decline, it adds.
Between June 2014 and February 2016, the inflation-adjusted Brent crude oil and Henry Hub natural gas prices declined 71% and 56%, respectively, a release goes on to say.
“The annual amount of electricity generated by natural gas will exceed the generation from coal-fired power plants this year for the first time,” says Energy Information Administrator Adam Sieminksi. “Coal-fired electricity generation will be 8% lower this year, while natural gas generation will increase by 4%. High natural gas production and low natural gas prices are making coal a less competitive generating fuel for many U.S. power plant operators.”