Inflation to Fall Short of Fed’s Goal Through 2012, Survey Says

Inflation in the U.S. through 2012 will fall short of the Federal Reserve’s long-term goal as growth and employment are slow to rebound, according to economists surveyed by Bloomberg News.

The Fed’s preferred price gauge, which is tied to consumer spending and excludes food and fuel costs, will climb 1.2 percent next year and 1.5 percent in 2012 on average, according to the median forecast of economists polled from Oct. 4 to Oct. 12. Most policy makers project those prices will increase 1.7 percent to 2 percent in the long run.