Washington — US retail sales recorded their smallest increase in six months in February as households cut back on motor vehicle purchases and discretionary spending, the latest indication that the economy lost further momentum in the first quarter. Other data on Wednesday showed a steady increase in inflation, with the consumer price index (CPI) posting its biggest year-on-year increase in nearly five years in February. Firming inflation could allow the Federal Reserve to raise interest rates on Wednesday despite signs of slowing domestic demand. "Nothing here to suggest the Fed shouldn’t raise interest rates at the policy meeting that concludes later today," said Paul Ashworth, chief US economist at Capital Economics in Toronto. The Commerce Department said retail sales edged up 0.1% last month, the weakest reading since August. But January’s retail sales were revised up to show a 0.6% percent rise instead of the previously reported 0.4% advance. Sales were probably held back by de...
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