US CPI unchanged at 3.7% in September, higher than expected

US inflation was unchanged in September from a month earlier, according to figures released on Thursday by the Bureau of Labour Statistics.

The consumer price index rose 3.7% on the year, in line with August and versus expectations of 3.6% growth.

On the month, prices rose 0.4% in September, down from a 0.6% increase in August but above consensus expectations for a 0.3% jump.

Meanwhile, core inflation - which strips out food and energy - rose 4.1% on the year, down from 4.4% growth in August, as expected. On the month, core inflation rose 0.3% in September, in line with the prior month and consensus expectations.

The BLS said the shelter index was the largest factor in the monthly increase in the index for all items less food and energy.

Michael Peace, lead US economist at Oxford Economics, said that with most of the 0.4% month-on-month increase driven by higher energy prices and a surprise rebound in shelter inflation - both of which he expects to be partly reversed in coming months - the underlying trend in inflation is still down.

"This report will not change the message from Fed officials over recent days that they can afford to be patient," he said.