By Abhijith Ganapavaram and Mike Stone (Reuters) – The U.S. Department of Defense will need an extra $42 billion in the next fiscal year to make up for a shortfall in how much it can buy as rising prices eat in to its procurement budget, a defense industry group said in a report coming out this week. “Significant inflation is a major challenge” for the Pentagon and its thousands of contractors, compounding the challenge from COVID-19 and dealing with the supply-chain crisis, said the National Defense Industrial Association report, which was reviewed by Reuters ahead of publication. From fiscal…