Today in business

INDEX SHOULD SHOW INFLATION EASING

Falling energy prices have been reducing consumer inflation since July. The drop was likely steeper in October amid heavy discounting by retailers. Thomson Reuters economists expect the Consumer Price Index index, which includes food and energy, to drop 0.3 percent, less than the consensus of analysts polled by the firm. The government report is due this morning.

Economists also expect further drops in housing costs, which make up 43 percent of the index. "Core" CPI, which removes fuel and food, is expected to gain 0.1 percent.

NEW HOME STARTS MAY BE RECORD LOW

Home builders have pulled back on construction because of weakening demand, and IHS Global Insight economists expect that the Commerce Department's data on housing starts will show initial construction of homes fell nearly 5 percent to a record low of 778,000 in October. The data are due this morning.

The homeowner vacancy rate, the proportion of single family homes that are vacant and for sale, remains high despite the drop in construction.

BRAS, NOT BAUBLES, FOR THE HOLIDAYS

Limited Brands, the company behind Victoria's Secret and Bath & Body Works, is expected to report it broke even in the third quarter. Earnings are due after the market closes. Despite a 7 percent decline in same-store sales, RBC Capital Markets analyst Howard Tubin says Limited is well positioned for the holidays, especially at Victoria's Secret. He says the store "could benefit at the expense of jewelry," as gift givers look to save money.