According to estimates released by the BOJ
That'll dash hopes of the Japanese central bank in trying to reach their 2% inflation target but the good news is that at least Japanese economic output is continuing to exceed its full capacity by quite a bit.
The revised Q4 2018 reading sees the output gap stand at its highest level since 2007 and the positive reading in Q1 2019 sees the output gap expanding for ten straight quarters.
In theory, a more positive output gap should help build inflationary pressures in the economy but as we have seen with tight labour market conditions in many developed nations, it's not as straightforward as that in the modern era.
But still, you have to figure even with a tighter labour market and a prolonged period of output exceeding the economy's full capacity, if that can't spur inflation then what will?
