Gas prices are back to what they were a year ago

A few months ago, gas prices hit record highs as inflation looked unstoppable. Gas prices have fallen significantly and are back to what they were a year ago, but a few months later they are back to what they were a year ago.

What Happened: According to AAA, the average price for a gallon of regular gasoline is $3.355. It was $3.349 a year ago. It is less than a cent of what the prices were one year ago today.

President Joe Biden and his team caught a lot of flack in the summer when gas prices broke an average of $5 a gallon. The administration used national reserves to bring down prices at the pump. The price of crude oil has led to relief at the pumps as well as other factors, such as the price of crude oil dropping.

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Like gas prices, share prices of oil and gas companies such as Exxon Mobil Corp XOM and Chevron Corporation CVX have also come off their highs and are now down 9% from them.

If gas prices keep falling, that could be good news for future CPI prints as gas and energy prices have been a big driver of inflation throughout the 2022 period.

It could be a warning for investors if gas prices fall more.

A drop in global demand for oil is often associated with a slowdown in the global economy. If gas prices are falling because economic activity is slowing, it might not matter if inflation is coming down.

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