Japan’s core inflation rate climbed at its fastest rate in more than two years in April, piling pressure on the Bank of Japan as it seeks to normalise the country’s interest rates and the unpopular government of Prime Minister Shigeru Ishiba.

By Rocky Swift TOKYO (Reuters) -Japanese government bonds remained stable on Friday, after a volatile week in which super-long yields hit record highs as inflation and fiscal concerns sapped demand for debt.

Japan’s consumer inflation gathered pace in April due to higher energy and food prices, although it is unclear if this will pave the way for more monetary tightening by the Bank of Japan.

From the BBC World Service: Japan's inflation rate is heating up, which could mean higher interest rates for the first time in years.

The price of Japanese-grown rice is soaring due to high inflation, low farm yields and a growing tourism sector.

The government has been releasing some of its stockpiled rice since March, but that has yet to translate to lower prices. Read more at straitstimes.com. Read more at straitstimes.com.

"Major financial events often happen first in Japan, for example the late-1990s tech bubble bursting first in Japan," Albert Edwards wrote Thursday.

Japan's historic shift away from negative rates and yield curve control marks a turning point, ending decades of ultra-expansionary monetary policy. Read more about it here.