KTKA

Some economists are calling a proposed gas tax holiday by two presidential hopefuls a bad idea for consumers.

Both John McCain and Hillary Clinton propose suspending the 18.4 cent-a-gallon federal gas tax between Memorial Day and Labor Day.

Barack Obama disagrees.

Many economists including the chairman of president Bush's Council of Economic Advisers side with Obama.

Economists believe suspending the gas tax during the summer would result in a near $10 billion loss for highway projects. And consumers would only save around $25 to $30 during the 3 month suspension.

Tom Kloza, chief analyst at the research firm Oil Price Information Service believes suspending the gas tax could tempt people to drive more, raise gas demand and lead to higher pump prices.

-----------------------------------------------------------------------------------------

It could be at least two years before consumers see cheaper groceries.

Food prices have spiked since 2007 due to an increase in global food consumption and the demand for corn and soybeans as alternative fuels.

Economist say these price fluctuations go in five-year cycles, with food prices beginning to drop after the third year.

Purdue University agricultural economist Chris Hurt, believes farm supplies could start catching up to demand by 2010, and help push down milk, bread and cereal prices.