TOKYO, Oct. 21 -- The Japanese government on Tuesday downgraded its assessment of the country's economy for the second consecutive month, likely adding to concerns over whether the government would go ahead to implement the second tax hike next year. "The Japanese economy is on a moderate recovery, while weakness can be seen recently," the Cabinet office said in its monthly economic report. In September, the government noted only "some weakness."

The office also said"consumer prices are rising at a slower tempo recently," compared with its September report in which it said they were"rising moderately."

It is the first time since 2012 that the government has downgraded its basic economic assessment for two months in a row.

The cause for the deterioration in the view was mainly industrial output, which the government said was "decreasing recently" in the wake of a chill in demand after the country's sales tax rose to 8 percent from 5 percent in April.

According to the Cabinet office, the private consumption, which fell off sharply after the tax hike, is "picking up,"in the reporting period, but"appears to be pausing recently."

The Japanese government plans to raise consumption tax again to 10 percent from Oct. 2015, with Prime Minister Shinzo Abe saying he will make a decision by year-end. But some lawmakers and advisers have suggested that it should be postponed in case of a potential sharp economic contraction.

However, the government maintained its view that the economy is "expected to recover" as a result of economic policies but suggested "attention should be given to the downside risks of the Japanese economy such as lengthening of the reaction after a last- minute rise in demand and slowing down of overseas economies."