According to Bloomberg’s latest monthly survey of analysts, inflation is expected to be well above the Fed’s target rate this year, and it will take longer to get back close to the 2% target. The consumer price index will average 5% this year, compared to last month’s forecast of 4.6%, according to the median of 76 economists polled on February 4.
The personal consumption expenditure index, which is the Fed’s preferred measure of inflation, is expected to average 4.2% in 2022, more stable than last month’s projection of 3.8%. Both metrics will average over 2% in 2023, they said.