"Recovery in the world economy is improving but uncertainty has increased due to such factors as the political unrest in the Middle East, possible monetary policy tightening in emerging economies and a possible prolonging of Europe's fiscal crisis," the ministry said in its "Green Book" report.

It said it would strengthen efforts to keep the inflation expectations from spreading, but it neither unveiled fresh administrative measures nor called for any change in the macroeconomic policy stance to better fight inflation.

The report is closely watched among investors because the ministry's assessment of the current economic situation has been seen as influencing the views of central bank board members in setting interest rates each month.