Tokyo, Aug 30 (IANS): Japan's industrial production rebounded by 3.2 percent in July from the previous month, the first increase in two months, the government said.

The data of output at factories and mines stood at 97.7 against the base of 100 for 2010, Xinhua quoated a preliminary report of Japan's ministry of economy, trade and industry as saying.

The index of industrial shipments rose by 1.3 percent to 94.9, while that of inventories was up 1.5 percent to 108.6.

Japan's unemployment rate fell to 3.8 percent in July, down from 3.9 percent in the previous month, according to official figures released Friday.

It was the second consecutive month of improvement, a positive signal of the Japanese economy.

Japan's ministry of internal affairs and communication Friday said the country's consumer prices rose by 0.7 percent in July from a year earlier, registering a second straight month of increase.

The core consumer price index, excluding fresh foods, stood at 100.1 against the 2010 base of 100, the ministry said.