Thursday, 29 January - Hey there you with the sad face

Good morning, it’s Thursday, 29 January. In your Squiz Today…

• Inflation has jumped, fuelling talk of a rate rise next week

• Tensions are ramping up between the US and Iran

• And Victorians are seeing red on their beaches…

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Squiz the Weather

Squiz Sayings

Said actor Natalie Portman on The Drew Barrymore Show about her worst-ever filming injury. Portman’s rib went AWOL on the set of Black Swan, where she played a ballerina losing touch with reality. She did win an Oscar for that role, so maybe it was worth it…

The numbers are in…

The Squiz

Inflation is on the rise, according to December’s Consumer Price Index (CPI) data from the Bureau of Statistics. That number, measuring the value of goods and services in Australia, rose by 3.8% in the 12 months to December - up from 3.4% in November. The trimmed mean (which tracks underlying inflation…) was also up 3.3% annually, from 3.2% the month prior. That, combined with December’s stronger-than-expected employment data, has economists from the big 4 banks placing bets on a 0.25% interest rate rise next week…

So prices are on the rise…

Yep, and the Bureau of Stats says the cost of housing was the big one, up 5.5% in December. To expand on that… The cost of rentals rose from 3.8% to 4%, and the cost of new dwellings was also up from 0.9% to 2.5% - its highest in a year. Capital Economics’ Abhijit Surya calls that housing data “shelter inflation”, and reckons it’s not going down anytime soon. In fact, he says “with the housing market still running hot, shelter inflation is likely to rise further in the months ahead”. But it wasn’t just housing - food and non-alcoholic beverages increased 3.4% over the year, and recreational/cultural costs were up 4.4%. 

So what now?

You might already know what we’re about to say… Inflation, at 3.8% (and on the rise…), is above the Reserve Bank’s 2-3% target, and that means a possible interest rate hike when the board meets next Monday and Tuesday. Treasurer Jim Chalmers was quick to say the numbers are “higher than we’d like” - but rejected suggestions the government’s public service spending is adding to inflation, pointing the finger at the private sector. Anders Magnusson, an economist at BDO, says the new data “reinforces the message from the September quarter” that underlying price pressures are sticky. He also said that lifting rates isn’t something the RBA does lightly - so if it does, it’s a sign the board “sees long-term inflation dynamics emerging, not just a temporary overshoot”. We’ll find out next week…

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Squiz the Rest

“Time is running out”

That was the warning US President Donald Trump sent to Iran overnight, if the regime doesn't make a deal over its nuclear weapons program. Tensions between the 2 powers have ramped up, with Trump saying a huge US armada is "moving quickly, with great power, enthusiasm and purpose" towards Iran. He said the fleet was larger than the one sent to Venezuela and was ready to "complete its missions with speed and violence if necessary". Iran - which maintains its nuclear program is peaceful - responded that it's ready to talk, but "if pushed it will defend itself and respond like never before". It comes in the wake of the regime's hardline crackdown on protestors earlier this month, in which witnesses say tens of thousands of people have died. An internet blackout is largely still in place, but human rights agencies put the number of confirmed deaths at 6,301 people, with a further 17,000 being investigated.
*If you’re after more background to the uprising in Iran, we’ve got a Squiz Shortcut to help… 

An investigation is underway…

…into whether a homemade bomb thrown into a Perth Invasion Day rally was a “potential terrorist act”. Around 2,500 people gathered at Forrest Place in Perth’s CBD were told to evacuate by police on Monday when a man allegedly threw the device from a balcony into the crowd. WA Police Commissioner Col Blanch said the “fragment bomb” was designed to explode but didn’t - and a 31yo man was arrested and charged with “intent to do harm”. Last night, WA Police, ASIO and the AFP said more charges may be on the way - Blanch says they need to collect more information about the suspect's ideology first. He met with Indigenous elders in WA yesterday, and federal Indigenous Affairs Minister Malarndirri McCarthy said the "targeting of a peaceful rally led by First Nations people is sickening". The suspect is due to appear in court again on 17 February. 

Anything you can do, I can do quicker

The pressure on Liberal leader Sussan Ley isn’t letting up, with former PM Tony Abbott jumping into the fray… Reports say Abbott (from the conservative wing of the Liberal party) is encouraging current Liberal MPs to get behind a conservative challenger to oust Ley - likely either Angus Taylor or Andrew Hastie. But before the Libs could even get around to a challenge, their former Coalition partners have beaten them to it… Backbencher Colin Boyce said yesterday that he’ll challenge leader David Littleproud on Monday. Boyce made the announcement on Sky News and says he’s challenging Littleproud because the leader is taking the party “over the political cliff”. His colleagues reckon any change of leader is very unlikely, but these are strange times… 

The grocery delivery battle is heating up… 

…with online retail giant Amazon getting into the fresh food delivery business in Oz - and partnering with local market chain Harris Farm to do it. If you’re not in Sydney, don’t get too excited - the rollout will start in the NSW capital’s inner-city before it expands outwards. But it’s a big deal in the retail world, bringing the international corporate behemoth into competition with local giants Coles and Woolworths. For Harris Farm’s part, its co-CEO Angus Harris said the Amazon deal would allow the chain to compete with the big dogs in the supermarket yard. At the same time, Amazon has closed its ‘Go’ and ‘Fresh’ stores in the US - saying it’s concentrating on its program with subsidiary Whole Foods (a US chain similar to Harris Farm). All systems go in the world of groceries…  

I don’t think you’re ready for this jellygeddon

Victorians have already got a lot on their minds with bushfires and extreme heat, but they’ve also been told to steer clear of thousands of red jellyfish washing up on their beaches. The lion’s mane jellyfish are rocking up in their thousands from Port Philip Bay to the Mornington Peninsula - even closing one beach last week. Experts say their sting can be painful and even dangerous for young children. It’s the biggest influx in 4 years, but jellyfish expert Dr Jonathan Lawley said the influx was likely seasonal, and most likely not caused by permanent changes to the climate. He hosed down fears of a ‘jellygeddon’ - where climate change might cause the creatures to wash up in ever-increasing numbers. So that’s good, but it does mean we won’t be able to say ‘jellygeddon’ as much…

Apropos of Nothing

The swanky San Francisco neighbourhood of Pacific Heights had an unexpected interloper this week - a 35kg mountain lion (or cougar) wandering through the streets. It’s since been captured, but imagine looking up from your phone to see this staring at you… 

We mentioned last year that a genetically-modified purple tomato could soon be available to buy in Oz - that day is now closer, with our regulators giving the sci-fi fruit the tick of approval recently. Next up, purple tomato sauce…  

Speaking of new sensations, a ‘crying horse’ toy has ended up in high demand in China, after a manufacturing error accidentally turned that smile upside down… As a result, the horses look a bit glum - but it’s made them even more popular…

Squiz the Day

10.30am (AEDT) - A memorial service for former Liberal MP Katie Allen, who held the now-abolished seat of Higgins from 2019 to 2022, will take place in Melbourne - a livestream is available on the St Paul’s Cathedral YouTube channel 

11.00am (AEDT) - A hearing in a constitutional challenge to anti-protest laws brought in the wake of the Bondi Beach massacre is set to go ahead. The coalition challenging the laws includes the Palestine Action Group and Jews Against the Occupation - Sydney

7:30pm (AEDT) - Tennis: Australian Open Day 12 - night session begins, featuring women’s singles semi-finals - Aryna Sabalenka v Elina Svitolina, and Jessica Pegula v Elena Rybakina - Melbourne, watch on 9Now

PM Anthony Albanese will address the Parliament of Timor-Leste and meet with President Dr José Ramos-Horta. Here’s a good explainer of what might be on his agenda - Dili

UK PM Keir Starmer is in China for high-level diplomatic meetings, including with President Xi Jinping, to discuss trade and cultural opportunities - Beijing

ABS Data Release - International trade price indexes (Export Price Index for Australia), December

PSA Dearest Gentle Reader: Part one of Bridgerton Season 4 drops on Netflix

🧩 National Puzzle Day (US)

Birthdays for author Germaine Greer (1939), TV personality/businesswoman Oprah Winfrey (1954) and surfer Stephanie Gilmore (1988)

Anniversary of: 

• The Raven by Edgar Allan Poe being published in the New York Evening Mirror (1845) 

• Karl Benz patents the first gasoline-driven automobile (1886)

• the President of France announcing the “definite end” to France's nuclear testing program just one day after the country exploded a nuclear device in the South Pacific (1996)