Figures showing upward pressure on prices could support moves to normalize policy
Bank of Japan Gov. Kazuo Ueda explains the central bank’s revised output gap calculations to lawmakers on March 26. (Photo by Ken Suzuki)
JUNTARO ARAI, SORA KITAJIMA and YUTA SAITO
TOKYO — Demand has exceeded supply capacity in the Japanese economy since the first quarter of 2022, according to revised output gap data released Thursday by the Bank of Japan, a reversal of previous calculations that showed five and a half years of excess supply.