TOKYO, Aug. 28 (Xinhua) -- The Japanese government on Monday said consumer prices are rising in August, while the general review of the Japanese economy remained unchanged.

In its monthly economic report, the Cabinet Office said the Japanese economy is recovering at a moderate pace, unchanged for the fourth straight month.

Exports in August showed "signs of picking up," said the report, while downgrading the view on housing construction to "almost flat" for the first time in 18 months from "steady" in the previous month.

Market watchers here pointed out that unexpectedly weak domestic demand is raising questions about the country's future growth prospects despite strong exports in the previous quarter.

Full attention should be given to price increases and fluctuations in financial and capital markets, the report added.