ECONOMIC HIGHLIGHTS

Malaysia: Slower 2Q GDP growth see

China: Yuan’s Hong Kong premium shrinks 77% on HKMA swap

China: May impose temporary price controls as inflation surges

Australia: Wage growth accelerates by most in almost two years

UK: Jobless claims unexpectedly fell in October

EU: Crisis causes retreat from dollar bonds: credit markets

US: Economy prices cool, backing fed inflation view

The cost of living rose less than forecast in October and housing starts dropped, validating Federal Reserve Chairman Ben S. Bernanke’s decision to give the US economy another dose of monetary stimulus. Consumer prices excluding food and fuel, the gauge followed by central bankers, increased 0.6% from October 2009, the smallest gain in y-o-y data going back to 1958, the Labor Department said. Builders began work last month on the fewest homes since a record low reached in April 2009, according to figures from the Commerce Department.

US: Consumer prices in US probably rose in October on gasolin
The cost of living in the US probably rose for a fourth month in October, led by higher gasoline and food pricesthat aren’t filtering through to other goods and services, economists said. The consumer-price index increased 0.3% after a 0.1% gain the prior month, according to the median forecast of economists surveyed by Bloomberg News before the Labor Department report. Excluding food and fuel, so-called core costs may have increased 0.7% from October 2009, matching a record low. Another report may show housing starts last month fell to the lowest level since July.