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The Reserve Bank looks increasingly likely to lift interest rates next week - after inflation rose more than expected

The Consumer Price Index has risen by 0.4 per cent for the three months to December, and 3.8 per cent for the year.

Housing was the biggest driver - particularly electricity bills. As energy rebates in some states expired, a lot of consumers experienced bill shock.

Markets are now pricing in a roughly 70 per cent chance of an interest rate hike when the reserve bank board meets next week

David Littleproud has defended his record as leader of the National Party, after backbencher Colin Boyce announced he will make a tilt for the leadership.

Mr Boyce says he will move a spill motion when MPs gather on Monday - taking aim at Mr Littleproud for his role in the Coalition's break-up.

In a statement, Mr Littleproud says he "respects the party room's decisions and direction, and that includes the right to voice different opinions".

And in tennis,

Kazakhstan's Elena Rybakina has beaten world number two Iga Swiatek at the Australian Open in two sets, 7-5, 6-1.

That is her ninth straight win over top-10 opposition, the match was over in just one hour and 35 minutes.

Later tonight, mens world number two Jannik Sinner will take on American eighth seed Ben Shelton on Rod Laver Arena for a spot in the Semi Finals. 

Nationals backbencher Colin Boyce says he'll challenge David Littleproud for party leadership.

Both the Nationals and Liberals have been in the spotlight after the Coalition dramatically split last week, with questions around both parties' leadership.

Now, National Colin Boyce has told Sky News he'll move a spill motion against David Littleproud on Monday.

The Queensland MP added while many people had suggested he should join One Nation, he had no intention of doing so.

New Data from the ABS shows inflation is up.

The Consumer Price Index rose 3.8 per cent annually in December, up from 3.4 per cent in the year to November.

The trimmed mean - a measure of underlying inflation - rose 3.3 per cent annually in December, up from 3.2 per cent a month earlier.

It comes ahead of the Reserve Bank's decision about interest rates next week.

Economists say the rise in inflation could increase the chances of a rate hike.

Australians are battling bushfires, floods, and extreme heat today.

While there's been reprieve from the oppressive heat in Adelaide and Melbourne, rural parts of Australia's south east are expecting temperatures nearing 50 degrees today,

Almost 18 thousand homes in Victoria are without power amid the heat and bushfires.

Meanwhile, a tropical low has dumped rain on parts of northern Queensland causing flooding, with some areas evacuated.

If you're in an area affected by an emergency, tune into your local ABC radio station for the latest updates, warnings and advice.

Some rural communities are being warned temperatures could push 50 degrees today.

A severe heatwave delivered record-breaking temperatures yesterday, and while there's been some relief for Adelaide and Melbourne, regional areas across Australia's south east will face maximums in the high forties today.

Canberra is set for its hottest day in six years with a top of 42 forecast.

Meanwhile, residents in fire affected areas of south west Victoria are taking stock this morning after another night of bushfire activity.

There have been unconfirmed reports of property losses in the Otway region as fire crews work to contain the Carlisle River and Gellibrand blaze.

While Victoria battles fires...parts of northern Queensland have been evacuated after a tropical low caused flooding.

If you're in an area affected by fires, floods, or severe weather, tune into your local ABC radio station for the latest updates, warnings and advice.

The US President says federal immigration agents will "de-escalate a little bit," after ICE agents shot citizens in Minneapolis this month.

Border Patrol Chief Gregory Borvino's been pulled out of the city amid backlash over the deaths and the Donald's Trump's immigration crackdown.

Democrats are now threatening to impeach Secretary of Homeland Security Kristy Noem.

Mr Trump's standing by her, but has described an ICE officer killing 37-year-old nurse Alex Pretti last week as a very sad situation.

A heatwave is continuing for parts of the country, amid bushfires in Victoria and floods in North Queensland.

Victorian authorities have welcomed a change in conditions for a fire in the Otways region, which is feared to have destroyed multiple homes.

But scorching temperatures are set to continue in much of Australia's south east with Canberra expecting its hottest day in six years today.  

Meanwhile, areas in North Queensland have been evacuated thanks to flooding, with a rescue helicopter called in to save three people stranded on flooded cars.

If you're in an area affected by fires, floods, or severe weather, tune into your local ABC radio station for the latest updates, warnings and advice.

US Authorities say one person is critical condition after a shooting involving  Border Patrol near the Mexico border.

Global attention is on America's Border Patrol and Immigration agencies right now, after ICE agents shot and killed two prostitutors in Minnesota this month.

Amid the immigration agency turmoil, Democrats are calling for Secretary of Homeland Security Kristy Noem to be sacked, threatening to impeach her if that does not happen.

Economists are warning a rise in quarterly inflation could increase the chances of an interest rate hike next week.

It comes ahead of the latest inflation figures, which the ABS will release later this morning.

If there's a bigger-than-expected rise in consumer prices, the Reserve Bank will be more likely to lift interest rates next week.

Communities around the country are battling severe weather, from bushfires to floods.

While a cool change is bringing some relief to parts of south east Australia which have been sweltering through a heatwave, authorities are still fighting  blazes in Victoria.

Multiple homes are feared lost in the Otways region.

Meanwhile, a tropical low has dumped heavy rain across North Queensland, triggering flash flooding and evacuations.

If you're in an affected area, tune into your local ABC radio station for the latest updates, warnings and advice.

Authorities in the US say one person is in a critical condition after a shooting involving  Border Patrol near the Mexico border.

There's been global attention on America's Border Patrol and Immigration agencies in recent weeks...with ICE agents killing two protesters in Minnesota this month.

Democrats are now threatening to impeach the homeland security secretary Kristi Noem unless she is sacked by the president, amid the immigration agency turmoil.

Scientists have set the 'Doomsday Clock' closer than ever to midnight.

The clock was created by an American not for profit in 1947, to warn the public about how close humanity is to destroying the world.

Its just been set to 85 seconds before midnight, the theoretical point of human annihilation.

Scientists have cited aggressive behaviour by countries with nuclear weapons, conflicts in Ukraine and the Middle East, and AI as key threats to humanity.

Some relief from the heat is on the way for parts of the country, as authorities continue to fight fires in Victoria.

Parts of south east Australia have sweltered through temperatures nearing fifty degrees in the past few days.

A cool change is set to bring some relief, but the weather bureau says it will not do much to stop bushfire activity.

Multiple homes are feared lost to a fire in the Otways region of Victoria.

If you're in an area affected, tune into your local ABC radio station for the latest updates warnings and advice.

Iran's currency has fallen to its lowest level ever, with about 760 thousand Rials now worth just one Australian Dollar. The economic crash comes amid tensions between Iran and the US, with a US military aircraft carrier arriving in the region.

The carrier's sparked concerns US president Donald Trump may follow through on hits threats of military action against the Iranian regime.

The regime's killed thousands of people in recent weeks, in a crackdown on protests fuelled by the country's economic struggles.

In tennis, Aussie Alex De Minaur's been knocked out of the Australian open, losing in straight sets to world number one Carlos Alcaraz.

Australia's still in with a chance in the women's doubles final with Kimberly Birell and Talia Gibson on court tonight at the Rod Laver arena, and in the mixed doubles this afternoon.

Here are the top stories for Wednesday the 28th of January.

South-east Australia's sweltering through record-breaking temperatures with several bushfires burning in Victoria, and multiple homes feared lost in the Otways region.

Authorities are bracing for another day of high fire danger in parts of South Australia, Victoria and New South Wales despite a cold front moving through overnight.

Another cool change is set to bring some relief but the weather bureau says it'll do little to suppress fire activity.

Aussie Alex de Minaur has been knocked out of the Australian Open.

World number one Carlos Alcaraz from Spain beat the local in straight sets in front of a muted Melbourne crowd.

De Minaur says despite once again being knocked out of contention by one of the sports top stars, he won't give up.

He was the last Australian left in the singles, but the Australian women's doubles will play in the quarter final tonight.A judge in the US state of Minnesota has ordered the head of the ICE immigration agency before court, saying he failed to comply with orders to hold  hearings for detained immigrants.

It comes after news Border Patrol commander Greg Bovino and some of his agents will leave Minnesota, after an ICE agent killed protester and nurse Alex Pretti.

It was the second death this month at the hands of a federal immigration officer.

The federal government plans to roll out a new National Medicines Record forcing health professionals to log all prescriptions they give out.

At the moment not all prescriptions are recorded, which the health minister says can lead to unsafe clinical decisions and potential medication abuse.

And Aussie actors Rose Byrne and Jacob Elordi have been nominated for BAFTA Film Awards.

The BAFTAS are one of the most prestigious awards in film due to take place next month.

Dark comedy One Battle After Another leads the nominations with 14, including for leading actor for Leonardo DiCaprio's performance.

Listen to the latest updates from ABC News

Listen to the latest updates from ABC News