Economic growth seen at only 0.2 percent: Philly Fed

NEW YORK (Reuters) - The U.S. economy will barely grow in the second quarter after sluggish growth early in the year, while inflation is expected to rise, said a survey released by the Philadelphia Federal Reserve on Tuesday.

The economists surveyed forecast gross domestic product in the current quarter would expand at an annualized rate of 0.2 percent, sharply below their prior forecast of 1.3 percent.

The government's preliminary reading of first-quarter U.S. GDP, released on April 30, said it grew at a rate of 0.6 percent, the same pace set in the fourth quarter.

The Philadelphia Fed's quarterly survey said overall inflation is expected to accelerate to at least 3 percent, up from prior expectations of 2.4 percent. Core inflation, stripping out volatile food and energy costs, will likely stay just above the top end of the Fed's perceived comfort zone of 2 percent in coming months.

Respondents in the Philly Fed's "Survey of Professional Forecasters" include economists at major financial institutions and research firms, universities and business groups.

(Reporting by Richard Leong; Editing by James Dalgleish)