WASHINGTON — Not put off by rising prices and increasing pink slips, consumers hit the stores in April, giving retail sales their biggest boost in three months. Wholesale prices also rose modestly.

        Sales at the nation's retailers jumped by a surprisingly strong 0.8 percent, after two straight months of declines. Many analysts were predicting a tiny 0.1 percent rise.

        The good news on retail sales didn't erase a lingering fear, particularly among the more pessimistic analysts, that rising layoffs might cause consumers to cut back sharply on spending and tip the country into recession.

        Another government report Friday showed wholesale inflation rose by 0.3 percent in April as gasoline prices took their biggest leap in 10 months.

        Economists said the reports won't deter the Federal Reserve from cutting interest rates for a fifth time this year when it meets on Tuesday. But it reopened the debate on the size of the cut: either by another half-point as many continue to think; or a more modest quarter-point.

        Still, investors worried. The Dow Jones Industrial Average fell 89.13 points to 10,821.31 for the day, while the Nasdaq Composite Index fell 21.43 to 2107.43.

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