For the first time in nearly four years, demand in Japan’s economy has outstripped supply, signaling that the nation is getting closer to achieving the lasting inflation sought by its central bank.
The output gap, a broad measure of supply and demand in the economy, rose 0.4% in the three months through June, according to the Cabinet Office on Friday.
This is an exciting development for Japan’s economy, as it indicates that the nation is making progress towards achieving its goal of lasting inflation. The central bank has been working towards this goal for several years, and this latest development is a positive sign that their efforts are paying off.
The rise in demand is likely due to a combination of factors, including an increase in consumer spending and business investment. This increase in demand has led to a tightening of the labor market, with unemployment rates falling and wages rising.
Overall, this is a positive development for Japan’s economy and its people. As demand continues to outstrip supply, it is likely that we will see further growth and progress towards achieving lasting inflation.