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

Well, almost.

What Happened: According to AAA, the average price today for a gallon of regular gasoline is $3.355. One year ago, it was $3.349. So, it's within one cent of what the prices were one year ago today.

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

Read Also: Biden The Master Oil Trader? Crude Drops Below $80 And US Government May Earn Windfall On Emergency Reserves, Relieving Pain At The Pump

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

Why It Matters: If gas prices keep falling, it could be good news for future CPI prints as gas and energy prices have been a big driver of inflation throughout 2022.

But gas prices falling more could also be a warning sign for investors.

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 that inflation is coming down.

Read Also: If You Invested $1,000 In Exxon Mobil When Joe Biden Was Elected President, Here's How Much You'd Have Now

Photo: Gergely Zsolnai via Shutterstock