When we look at inflation, several items that take a huge chunk of each paycheck are not considered factors.
"If you take out food and energy we economists call that the core."
Creighton University Economist Dr. Ernie Goss explains why.
"You take out food and energy inflation is not so bad but that is what everyone buys. The reason is because today’s ups are balanced by, the theory is, by tomorrow’s downs but recently that has not been the case. In other words, we've seen a real increase in food and energy prices and there doesn't seem to be any come-down, at least, certainly in terms of food."
Dr. Goss says even economists are scratching their heads regarding the high price of gasoline.
"The interesting part for an economist is the diverges between oil prices and gasoline prices. In other words gasoline prices are up much, much more than oil prices."
Dr. Goss says the good news is the Midwest is doing an excellent job with exports.
"Absolutely. One of the big, big factors driving this economy and for that matter the U-S economy. More so here for Nebraska, Iowa, North Dakota, South Dakota and Kansas where we are seeing a real increase in food exports and that is having significant impacts on the economy."
(Courtesy of The Nebraska Radio Network. All Rights Reserved.)