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Will Korean consumers continue to shrug off energy spike?

March retail sales in Korea rose strongly in both m/m and y/y terms, suggesting households have largely shrugged off the Middle East crisis, with inflation kept in check despite higher global energy costs, partly due to administrative measures on prices. However, while fiscal support and subdued inflation are providing a near-term buffer, high household debt and weak confidence are likely to limit the durability of the rebound.

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