Composite image by JEROME CRISTOBAL from INQUIRER.net file and stock photos
MANILA, Philippines Ninety-four percent of Metro Manila’s middle-class Gen Zs and millennials felt the impact of inflation during the second quarter of this year, highlighting the burden of rising prices on Metro Manila’s young labor force.
A survey conducted by the Nomura Research Institute (NRI) Singapore-Manila branch from May to June with 300 respondents belonging to this age demographic in the National Capital Region found that 94 percent felt the effects of inflation during this period.
“The rising costs of essential goods and services, such as food, transportation, fuel, and utilities, have forced these young adults to make cuts in their nonessential spending, including leisure and entertainment expenses,” NRI said in a statement.
The research institute noted that 60 percent of respondents reported that the continuous price increases had the greatest impact on their food and beverage expenses.
The next largest impact was on transportation and fuel costs according to 15 percent of the people surveyed, while another 14 percent pointed to higher utilities expenses, such as electricity, water, and internet bills.
The survey also found that 83 percent of the participants stated that they had reduced their spending on nonessential goods, while 79 percent found it necessary to cut back on leisure and entertainment expenses.
Approximately one-third of the respondents, specifically 32 percent, also reported being unable to save over the past six to twelve months.
As for those who managed to save, 44 percent said they saved a lower percentage of their income.
To cope with the financial strain brought about by inflation, the NRI said that a significant number of respondents have opted to obtain loans, with 71 percent saying they have outstanding loans.
Among those who already have loans, 58 percent said they had to cut back on other expenses to meet their loan obligations, while 19 percent said they were forced to delay payments.
The Philippines’ inflation rate stood at 5.4 percent last June after decelerating for the fifth straight month, bringing the half-year average to 7.2 percent.