Gas prices slowly dropping in Illinois, Northwest Indiana, while other costs are up

Inflation is higher than expected, according to a new report, but gas prices are down.

The national average is below $4 per gallon, giving motorists across Chicago a bit of a breather for the first time since July.

Gas is around $5 a gallon across the city, with the average at $4.80 in the city. Experts say even lower prices could be a thing in the coming weeks, even though other things are up.

The nation's average is just below $4 a gallon. In Illinois — $4.43, and in Chicago — $4.83.

Where are drivers really catching a break? Just across state lines.

"We could see prices falling below $3 a gallon at the cheapest locations in the next two to three weeks. Thinking across the line to Indiana, Northwest Indiana, certainly," said Patrick DeHaan, head of Petroleum Analysis at GasBuddy.

The state of Indiana's extended gas tax suspension is costing the state more than $1 billion in road and infrastructure revenue. That is set to expire on Friday, Dec. 4, if it is not further extended.

"Not every state finds it responsible to spend hundreds of millions or even a billion dollars on lowering prices," DeHaan said.

He says when it comes to these lower prices? Don't go making assumptions.

The dip has nothing to do with the results of the Nov. 3 midterm elections and everything to do with the season — as the season gets cooler, fewer people will be coming outside.

"Less time traveling and getting outside. That decrease in demand is a big reason prices go down literally every autumn. Alongside that, we've made the transition to cheaper winter gasoline, and refineries are finishing up maintenance."

Steven Durlauf, a professor at the University of Chicago's Harris School of Public Policy, says these lower prices will not mean we will see everything else come down, too.

With the U.S. Bureau of Labor Statistics reporting inflation higher than expected last month, the price of consumer goods is up .4%.

"Four tenths of a percent in a month — it doesn't sound all that big. On the other hand, if you compound that over a year, we are now thinking about numbers that are between 4 and 5%," Durlauf said.

But what are the expectations heading into the holiday season? Experts tell CBS News Chicago that prices go even lower the closer we get to Thanksgiving, especially in nearby Indiana and Wisconsin.