Output gap shrinks from 1.03% to 1.02%
The above is according to the latest estimates by the BOJ. The full report can be found here.
The (what seems to be) eternal struggle for inflation in Japan continues. The output gap is still shrinking further after hitting 2.10% in Q4 2018 - the highest level since 2007 - but the positive news is that the output gap is expanding for twelve straight quarters now.
That said, this has hardly translated into a meaningful increase in price pressures in the Japanese economy and that will raise doubts over whether or not inflation will ever return.
