diff --git a/lib/http/features/auto_inflate.rb b/lib/http/features/auto_inflate.rb
index e1d383ef..3f253341 100644
--- a/lib/http/features/auto_inflate.rb
+++ b/lib/http/features/auto_inflate.rb
@@ -17,15 +17,15 @@ def wrap_response(response)
           :headers       => response.headers,
           :proxy_headers => response.proxy_headers,
           :connection    => response.connection,
-          :body          => stream_for(response.connection),
+          :body          => stream_for(response.connection, :encoding => response.body.encoding),
           :request       => response.request
         }
 
         Response.new(options)
       end
 
-      def stream_for(connection)
-        Response::Body.new(Response::Inflater.new(connection))
+      def stream_for(connection, encoding: Encoding::BINARY)
+        Response::Body.new(Response::Inflater.new(connection), :encoding => encoding)
       end
 
       private
diff --git a/lib/http/response/body.rb b/lib/http/response/body.rb
index d4406a80..f41a6550 100644
--- a/lib/http/response/body.rb
+++ b/lib/http/response/body.rb
@@ -16,6 +16,11 @@ class Body
       # @return [HTTP::Connection]
       attr_reader :connection
 
+      # The charset encoding determined by the Response
+      #
+      # @return [Encoding]
+      attr_reader :encoding
+
       def initialize(stream, encoding: Encoding::BINARY)
         @stream     = stream
         @connection = stream.is_a?(Inflater) ? stream.connection : stream
diff --git a/spec/lib/http/features/auto_inflate_spec.rb b/spec/lib/http/features/auto_inflate_spec.rb
index f6c345d0..b87430d2 100644
--- a/spec/lib/http/features/auto_inflate_spec.rb
+++ b/spec/lib/http/features/auto_inflate_spec.rb
@@ -65,6 +65,14 @@
       end
     end
 
+    context "for gzip Content-Encoding header with charset" do
+      let(:headers) { {:content_encoding => "gzip", :content_type => "text/html; charset=Shift_JIS"} }
+
+      it "returns a HTTP::Response with the encoding from the response charset" do
+        expect(result.body.encoding).to be Encoding::Shift_JIS
+      end
+    end
+
     # TODO(ixti): We should refactor API to either make uri non-optional,
     #   or add reference to request into response object (better).
     context "when response has uri" do
diff --git a/spec/lib/http_spec.rb b/spec/lib/http_spec.rb
index f7a1bb21..3b97c577 100644
--- a/spec/lib/http_spec.rb
+++ b/spec/lib/http_spec.rb
@@ -456,6 +456,15 @@ def setsockopt(*args)
 
         expect(response.to_s).to eq("")
       end
+
+      it "returns decoded body with the correct charset" do
+        encoding = Encoding::Shift_JIS
+        client   = HTTP.use(:auto_inflate).headers("Accept-Encoding" => "gzip").encoding(encoding)
+        body     = "もしもし!".encode(encoding, Encoding::UTF_8)
+        response = client.post("#{dummy.endpoint}/encoded-body", :body => body)
+
+        expect(response.to_s).to eq("#{body}-gzipped")
+      end
     end
 
     context "with :normalize_uri" do