The Philippine middle class is increasingly bearing the brunt of economic pressures caused by high inflation and elevated interest rates, according to a report by the Philippine Institute of Development Studies (PIDS).

The study highlights how households, particularly those in the middle-income bracket, are being squeezed as rising living costs and loan expenses eat into their disposable income.

This phenomenon, termed the 'quiet absorber' by PIDS, refers to the middle class absorbing economic shocks without significant visible protest, unlike previous periods of crisis.

The report notes that inflation has eroded purchasing power, while higher interest rates have increased the cost of borrowing, making it harder for families to manage expenses.Experts warn that this trend could lead to long-term financial strain if not addressed, as the middle class forms the backbone of the economy.The findings underscore the need for policy interventions to alleviate the burden on households and prevent further economic instability.

The PIDS report also emphasizes the importance of monitoring inflation trends and interest rate policies to ensure they do not disproportionately affect vulnerable segments of the population.

Overall, the study provides a critical analysis of how economic factors are reshaping the financial landscape for Filipinos, calling for a balanced approach to growth and stability.