Gas prices have fallen 9% from their peak this summer, in a good sign for inflation

• The average price for a gallon of gas has fallen to about $3.50, according to data from GasBuddy.
• That's good news for inflation, as investors and consumers are both hoping that price increases continue to dissipate.
• GasBuddy attributed the 9% decline in gasoline prices since early September to a seasonal drop in demand.

In a welcome sign to both consumers and investors, gasoline prices are falling.

The decline means consumers are set to save some money at the pump, while investors should have one less component of inflation to worry about.

The average price for a gallon of gas in the US dipped to $3.50 on Monday, representing a 9% decline from early September when the average price was at $3.86, according to data from GasBuddy.

This represents the fifth consecutive week that gas prices have fallen and comes even as oil prices jumped on growing tension in the Middle East, sparked by the conflict between Israel and Hamas.

"As air temperatures trend downward as we progress into fall, gasoline prices have seen another week of their own seasonal fall. The national average is on the cusp of falling to the lowest level since March, something that could happen this week," GasBuddy's head of petroleum analysis Patrick De Haan said on Monday.

In addition to seasonal trends, which also include cheaper winter fuel blends, another factor in falling gasoline prices is a resolution to refinery issues that had previously led to some supply crunches over the summer.

And gasoline could get even cheaper. De Haan said prices could continue to fall in the weeks ahead.

Falling gas prices are good news for the Federal Reserve in its ongoing fight against inflation. While gasoline prices make up only a small portion of the CPI inflation basket, they do play a big role in setting consumers' expectations for future inflation.

And as consumers drive past gas stations on a daily basis and start to notice the recent decline in gasoline prices, that should play into their mindset that inflation is in fact coming down.