Inflation leveled off at 3.7% in September, continuing a gradual consumer price slowdown

Inflation leveled off to 3.7% in September compared to a year ago, extending a gradual slowdown in consumer prices, even as it slowed to 0.4% from 0.6% in August.

The Bureau of Labor Statistics released its latest round of price data Thursday morning. Experts had expected it to show that overall prices for consumers rose 3.6% from a year ago, and by 0.2% compared to August.

Meanwhile, core inflation — a measurement of cost increases that excludes energy and food prices because of their volatility — is up 4.1% from September last year, in line with expectations.

That means prices rose less in September than they did in August, when the cost of gasoline had spiked 10% from July.

The government said the cost of shelter rose 7.2% from a year ago. That was the largest reason for the increase, and it reflects continued growth in home prices, which by some measurements are at all-time highs.