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MNI BRIEF:BOJ Q1 Output Gap Hits 16th Negative Reading In Row

(MNI) Tokyo
(MNI) TOKYO

Japan's output gap was estimated at -0.66% in Q1, the 16th straight negative reading following -0.03% in Q4 of 2023, indicating upward pressure on prices is slowing with a time lag, BOJ data showed on Wednesday.

The BOJ's estimate of the output gap, based on capital and labour stock, is smaller than the Cabinet Office's latest estimate of -1.1% in Q1 (vs. -0.4% in Q4), which is based on revised Q1 GDP data which showed a 0.7% fall q/q, or an annualized rate of -2.9%.

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Japan's output gap was estimated at -0.66% in Q1, the 16th straight negative reading following -0.03% in Q4 of 2023, indicating upward pressure on prices is slowing with a time lag, BOJ data showed on Wednesday.

The BOJ's estimate of the output gap, based on capital and labour stock, is smaller than the Cabinet Office's latest estimate of -1.1% in Q1 (vs. -0.4% in Q4), which is based on revised Q1 GDP data which showed a 0.7% fall q/q, or an annualized rate of -2.9%.

Keep reading...Show less