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It’s all gone a bit pear-shaped for the Reserve Bank. Inflation – which was trending lower post-COVID, paving the way for three interest rate cuts last year – has now jumped higher. The latest figures show headline inflation surged to 3.8% in the year to December, up from 3.4%.
Rising costs for housing construction, some food items and child care all contributed. Even the key measure of underlying inflation rose to 3.4% from 3.0%, well above the Reserve Bank’s own forecasts and firmly outside its target band of 2–3%.
This all makes a hike in interest rates next Tuesday much more likely; all four major banks are now predicting an increase. But as John Hawkins writes, raising rates just five months after the most recent cut would be an unusually rapid turnaround for the central bank. It could call their past judgement into question.
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Victoria Thieberger
Business and Economics Editor
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John Hawkins, University of Canberra
A rate hike next week would be an unusually rapid turnaround after the recent interest rate cuts.
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Michelle Grattan, University of Canberra
A little-known Nationals MP has put up his hand to spill the party’s leadership, but unless he gets some support from colleagues, it may not get off the ground.
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Michelle Grattan, University of Canberra
The Liberal senator says ‘social media influencers’ have falsely ‘whipped up a frenzy’ of misinformation about new hate speech laws limiting freedom of speech.
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David S G Goodman, University of Sydney
Removing top military leaders may suggest the Chinese military is undergoing a culture change. But it’s difficult to know in a system as opaque as China’s.
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Brittany Johnson, Flinders University; Alexandra Manson, Flinders University; Rebecca Golley, Flinders University
A new study looks at what parents want in school lunch programs, and how much they would be willing to pay to support them.
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Lakshini Gunasekera, Monash University; Elspeth Hutton, Monash University
For some people, changes in routine and diet – along with heat, glare and dehydration – may make migraine flare. Knowing your triggers can help you prepare.
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Wesley Morgan, UNSW Sydney
Yes, climate change is worsening and action is uneven. But the shift away from fossil fuels is beginning.
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Politics + Society
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Ali Mamouri, Deakin University
After the fall of Bashar al-Assad, minority groups in Syria have been targeted with violence. The US and other regional powers have largely stayed silent.
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Melissa Conley Tyler, The University of Melbourne
Despite a complicated history between Australia and Timor-Leste, there appears to be plenty of goodwill as Anthony Albanese visits the new democratic nation.
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Hal Pawson, UNSW Sydney; Vivienne Milligan, UNSW Sydney
Australia shares many of the issues the European Commission’s plan tries to tackle, from lack of housing construction to taxation. Here are some lessons.
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Environment + Energy
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Martin Brook, University of Auckland, Waipapa Taumata Rau
After the fatal landslides at Mount Maunganui, attention has focused on recent tree removal from Mauao. But landslides rarely have simple causes.
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Science + Technology
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Shane Rogers, Edith Cowan University
Memory is at the very heart of who we are, but it’s surprisingly complex too.
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Emily Hunt, University of Sydney; David Raubenheimer, University of Sydney; Ezequiel M. Marzinelli, University of Sydney
The teeth of white sharks are not static weapons but living records of a shark’s changing lifestyle.
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David Blair, The University of Western Australia
Astronomers have spotted runaway black holes screaming through space, leaving trails of stars in in their wake.
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Arts + Culture
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Oscar Bloomfield, Deakin University
The Safdie brothers' films are known for their antiheroes. Marty Supreme is particularly unlikeable – but the audience champions him all the same.
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Books + Ideas
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Patrick Flanery, Adelaide University
Departure(s) sketches out the limits of Julian Barnes’ aspirations for his art.
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A simple fix?
“Any major party can tweak the rug out from under One Nation's growth by dealing with one heck of an elephant in the room – population growth. Sure, growing Australia's population by 30% every 20 years makes certain economic goals easy to hit. It also makes citizens' lives increasingly difficult, and housing impossible to solve, since building can never outstrip new demand. Yet still the major parties won't touch population issues, and citizen frustration turns to anger, and anger turns to One Nation.”
Peter McPherson
Periods and productivity
“Great to see an article on the subject that is never discussed in the open: the ongoing impact period pain and excessive bleeding has on women and their working life. The fact that it’s monthly means living with a constant rollercoaster that affects energy, concentration, and confidence. Until women's health is researched properly, period products funded and workplaces are respectful of the unique needs of a woman's health, we will continue to be less well off financially.”
Jane Davis
Recommended reading
“If there's one book which will get Australians thinking about themselves as one people, it's Mark McKenna's Shortest History of Australia. He sees waves of immigrants in the context of a continuous population of the land we know as Australia. It's short, it's to the point, and it is worth being at the top of everyone's reading list.”
Glenda Gartrell
We'd love to hear from you. You can email us with your thoughts on our stories and each day we'll publish an edited selection.
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13 February 2026
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Sydney
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