Inconsolata font does not work in Terminal

Try to clear and rebuild your font cache with the following:

sudo atsutil databases -remove
sudo atsutil server -shutdown
sudo atsutil server -ping

The above is "my standard answer" to font problems.

After your reply, I tried to download the font too. Installed it and in the Terminal.app got the same result as you. So +1 to the question - I'm interested too.

So,

• removed the otf version (does not work)
• I downloaded the ttf version from the Google Fonts Directory
• removed my cache as above
• installed the ttf version
• and works.

after it, for the test:

• removed the ttf version
• cleaned the cache
• installed the otf version
• does not work

so again for ttf - and have a working version in my Terminal.app

Haven't any idea why the otf version does not work. ;(

I can't reproduce your problem on my Mac (10.6.7). I downloaded the "OpenType file", opened it, installed it into Font Book, and configured Terminal to use it without incident. Maybe try deleting the font from your system and trying again?

Apparently there is a problem with OpenType fonts in Terminal since Snow Leopard. See this thread on Apple Support: https://discussions.apple.com/thread/2775619?start=0&tstart=0