Demand in Japan’s economy outstripped supply for the first time in nearly four years, a signal 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. The reading turned positive for the first time since the third quarter of 2019, when demand surged ahead of a sales tax increase. The latest figure comes in the same week the Cabinet Office issued a report detailing progress in eradicating deflation in Japan’s economy after ... (full story)