Look at a Walther PPS or Kahr. They're both very good pocket pistols.
The Ruger LCP is certainly cheaper, but merely good in comparison (make sure you get one that has had the recalls performed on it).
In any case, I would shop for the holster first. A quality holster maker isn't going to put his name on a holster for a POS gun, so you eliminate them right off.
Chip H.