Metro Manila’s middle-class Gen Zs and millennials expressed growing concern over the impact of inflation in the second quarter of 2023, according to a survey conducted by the Nomura Research Institute Singapore-Manila Branch.
The survey, conducted from May to June, revealed that 94 percent of respondents felt the effects of inflation during the period. The rising costs of essential goods and services, such as food, transportation, fuel and utilities, forced these young adults to make cuts in their non-essential spending, including leisure and entertainment expenses.
Among the respondents, 60 percent reported that the continuous price increases had the greatest impact on their food and beverage expenses, followed by transportation and fuel costs at 15 percent, and utilities such as electricity, water and internet bills at 14 percent.
An overwhelming 83 percent of participants said they had reduced their spending on non-essential goods, while 79 percent found it necessary to cut back on leisure and entertainment expenses.
The survey also highlighted the financial challenges faced by this demographic. About one-third of respondents (32 percent) reported being unable to save over the past 6 to 12 months. For those who managed to save, 44 percent saved a lower percentage of their income. The persistent inflationary pressures led 38 percent of respondents to adjust their savings goals by either reducing the target amount or delaying their timelines.
