From this perspective, it is necessary to examine the sustainability of price increases by comprehensively assessing the outlook for prices, as well as the underlying output gap, medium- to long-term inflation expectations, and wage  6  developments, in addition to various measures of core inflation, which exclude temporary fluctuations.
What is important is to achieve a virtuous cycle where wages and prices rise simultaneously and people's living standards improve amid continued growth in the economy. In this regard, Japan's economy is still on its way to recovery from the downturn caused by COVID-19.