A look at long-run price expectations

Inflation is projected to run well above the Federal Reserve’s target rate this year and it will take longer to recede toward the 2% goal, according to Bloomberg’s latest monthly survey of forecasters.

The consumer price index will average 5% this year, according to the median of 76 economists surveyed Feb. 4-10. The survey preceded the latest CPI report, which showed inflation jumped 7.5% in January from a year ago, a fresh four-decade high.

The personal consumption expenditures index, which is the Fed’s preferred inflation metric, will likely average 4.2% in 2022. Both measures will average more than 2% in 2023, forecasters said.

Policy makers at the Fed are prepared to start raising interest rates in

March, and traders are increasing their bets for a half-point hike.