Report: Japanese economic recovery pausing

TOKYO, July 14 (UPI) -- The Japanese government's July assessment of its economy Monday showed no change from its previous report, noting the recovery is stalling amid rising prices.

"While the economic recovery appears to be pausing, weak movements have been seen recently," the Cabinet Office said in its July monthly economic report, which contained the same phrasing used the previous month's report, the Kyodo news service reported.

The government report said prices have been "gradually on the rise." The core consumer price index, which excludes food prices, jumped 1.5 percent in May from the same month of last year, the fastest such increase in 15 years.

The July report said companies "have become all the more cautious," reflecting the central bank's latest Tankan quarterly survey saying business confidence among Japan's major manufacturers deteriorated in the quarter ended June, Kyodo reported.

The government report said future Japanese exports will be influenced by the U.S. economy and emphasized the need to monitor inventory levels of items such as electronic parts and semiconductors.

Japanese Economic Minister Hiroko Ota urged close monitoring of inflationary pressures, saying consumer price rises were not caused by higher domestic demand but by external factors such as rising crude oil prices.