(Bloomberg) -- US gasoline is set to get even cheaper as the underlying futures benchmark sank to a two-year low, a sign that inflation could continue to slow down. 

New York gasoline futures settled at around $2 a gallon on Thursday, driven by losses in oil as well as a growing surplus in the physical market. The country’s implied gasoline consumption has fallen to more than 200,000 barrels a day below seasonal norms while supply has increased. 

The drop in futures means more downward momentum for retail gasoline prices, which have already fallen to $3.202 a gallon, their lowest point of the year. Prices are down by more than 15 cents from this time last year and are about 68 cents lower from mid-September’s peak, according to data from the American Automobile Association. 

In addition to considerable savings for households, cheap fuel can lift consumer sentiment as gasoline prices are one of the most visible signs of inflation. It’s also a boon for President Joe Biden as the US election season heats up. 

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(Updates with futures price in second paragraph)

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