The logic behind this thinking just amazes me. "Core inflation" what the hell does that mean? What's left after food and energy? Let's see, would that be housing, clothing and travel? With consumers not spending because they've been raped at the gas pump and food has actually gone up by 15 to 20% (note that the size of the packages are going down), let's put those figures back into the inflation numbers and see where we stand. Then of course there's housing. Just a major part of a persons' net worth that's been taken out of the equation. This is like saying "he's in great shape if you discount the fact that he had his arms and legs blown off." (No insult to our Iraqi vets intended there just making a point)
Sorry econo guys this is stagflation plain and simple. You can't sugar coat it to look like something it isn't. Wages are down, prices are up and the worst is yet to come.