* US inflation unexpectedly stays at 2.7% *

US inflation unexpectedly held at 2.7% last month, confounding expectations of an uptick, while a core measure came in higher than expected.

The annual headline rate of inflation was expected to rise slightly to 2.8%.

Stock market futures gained after the figures were released. Spot gold rose by 0.2% to $3,351 an ounce.

However, the core rate of inflation, stripping out volatile food and energy costs, was slightly higher than expected at 3.1%, according to the US Bureau of Labor Statistics.

This complicates the Federal Reserve’s policy decision. It had been expected to lower rates in September, and the data is unlikely to change that expectation.

Source: The Guardian