Retail sales increase 0.4 in October
September sales gain raised to 0.8 from 0.4
Core retail sales dip 0.1; September revised up to 1.2
Import prices up 0.3 after two straight monthly declines

WASHINGTON, Nov 15 Reuters U.S. retail sales increased slightly more than expected in October as households boosted purchases of motor vehicles and electronic goods, suggesting the economy kicked off the fourth quarter on a strong note.

The fairly upbeat sales report on Friday, which was accompanied by sharp upward revisions to September39;s data, together with news of a rebound in import prices last month prompted traders to pare back expectations that the Federal Reserve would cut interest rates in December. Fed Chair Jerome Powell said on Thursday the economy is not sending any signals that we need to be in a hurry to lower rates.

Retail sales data today make many in the markets wonder if another rate cut at the December meeting is warranted at all, said Christopher Rupkey, chief economist at FWDBONDS. With fiscal policy expected to shift into high gear on the progrowth stimulus side, perhaps the Fed39;s monetary policy should not be putting another log on the fire to fuel growth by lowering rates, as it could lead to a return of inflation.

Retail sales rose 0.4 last month after an upwardly revised 0.8 advance in September, the Commerce Department39;s Census Bureau said. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted…