Here’s one definition of the middle-class squeeze: it’s the gap between middle-income families’ economic aspirations and their means. And one way that gap expands is when just paying for basic necessities uses up too much of the old paycheck. Obviously, energy prices have been a widely appreciated part of this story. But the recent increase in food prices deserves equal time in any discussion about the squeeze.

The figure below shows two countervailing trends (click on image to enlarge):

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