(NewsNation) — Consumer prices rose faster than economists expected last month, with much of the increase driven by an uptick in rent and gas prices.

Overall inflation rose 3.7% for the 12 months ending in September, the same annual rate reported in August and slightly above the 3.6% rate economists predicted.

In monthly terms, prices rose 0.4% from August to September, better than the previous month’s 0.6% pace.

The shelter index, which primarily includes rent prices and the implicit rent value homeowners would have to pay, accounted for over half of the monthly increase.

Shelter costs are up 7.2% compared to the year prior, nearly double the rate for all consumer prices.

An increase in gas prices was also a “major contributor” to the overall monthly rise, the Bureau of Labor Statistics noted. Those prices increased 2.1% from August to September and were up 3.0% compared to a year ago.

Rise in housing costs off March peak but still high

Housing inflation is still running hot at 7.2% year-over-year, but there are some indications that number could fall.

For one, it’s already started to. September’s annual rate is the lowest year-over-year increase since November 2022, down from an 8.2% peak in March.

Although rent prices are still rising significantly faster than the 3.2% annual rate in September 2021, the shelter index is also a lagging indicator. That means improvements in the data may not show up for several months, even if prices have already fallen.

In a statement, Lawrence Yun, chief economist at the National Realtors Association (NAR), said it’s “inevitable for rent growth to slow” due to new construction.

New apartment construction in 2023 is set to reach its highest level in 50 years thanks to a “pandemic building boom,” according to a recent report.

The cool-off can’t come soon enough, as Americans have watched the national median rent skyrocket 22% since March 2020.

Gas prices increase but slower than the month prior

Higher gas prices helped drive inflation in September, but last month’s 2.1% increase marks a notable deceleration from the month prior when those same costs jumped 10.6%.

The dramatic change is a reflection of a CPI measure that is notoriously volatile.

Surging oil costs pushed gas prices to their highest level of the year in September. The national average for unleaded gasoline hit $3.88 per gallon, according to AAA. Pump prices for regular have since fallen to around $3.65 nationally.

As stations transition from summer to winter blend gas, those prices may fall further. Winter blend gas is less expensive because it is able to contain more butane, although that added butane also makes the gas slightly less fuel-efficient.

There’s other positive news on the gas front: Domestic oil production has picked up.

Last week, U.S. oil production reached a record level of 13.2 million barrels, according to Gas Buddy’s Patrick De Haan.