As I mentioned at the beginning, Japan's output gap has widened within positive territory for seven consecutive quarters. As written in economic textbooks, prices of goods and services rise when demand  5  exceeds supply. In addition, as economic activity becomes more dynamic, it is likely that labor market conditions will tighten and wage growth rates will rise more clearly.
Under these circumstances, it is expected that households' tolerance of price rises will improve, and along with this, firms' stance gradually will shift toward further raising prices.