Early this morning, AAA posted the national average price of a gallon of regular gas at $3.990, dropping under the psychological barrier of $4.
Why it matters: The falling gas price is a huge relief for consumers — and for Democrats, since Republicans plan to hammer rising prices in midterm campaigns.
- It's the first time gas prices have retreated to below $4 a gallon since early March. They hit a record $5.016 on June 14.
The big picture: Both crude oil and wholesale gasoline prices have rolled over since June, signaling that the worst of the recently elevated energy costs may have passed, Axios' Matt Phillips writes.
- The global benchmark Brent crude, which reached a high of $139 per barrel after the Russian invasion of Ukraine, was $92 on Wednesday.
Zoom in: Retail gas prices have fallen almost everywhere over the past month, with the Midwest and South seeing some of the steepest drops.
- Ohio had the largest fall ($1.36). Hawaii had the smallest (21¢).
Zoom out: Inflation expectations are also falling. Inflation was flat in July, driven lower by a sharp fall in energy costs.
Reality check: Consumer inflation is still up 8.5% over the past year.
