1. Inflation surge triggers early rate rises
The big inflation number of 3.5% we saw earlier this week has economists tipping that home loan interest rates will rise by as early as May this year. Before Tuesday’s seven and half year high rise in the underlying rate of inflation, most economists thought the cash rate and therefore the key mortgage rates of interest would rise in November. The RBA was leaning towards 2023 but now the majority of economists expect the first rise will be after the expected May federal election in November. Some more inflation-scared economists are tipping June and even May, but that’s an extreme minority view.

2. UK study makes significant finding in Omicron reinfections
Omicron has almost completely replaced the previously dominant delta variant of Covid-19 in England, a new study has found. More than two-thirds of people who tested positive in the study reported they either had suspected or confirmed Covid in the past. "The study found that 99% of sequenced positive swabs came from people infected with the omicron variant, with only 1% of infections being caused by the delta variant," CNBC reports.

3. Food prices have been going up!
If you’ve noticed the food you buy becoming more expensive, you’re not imagining things. In the three months to December, the rise in prices doubled. Some reports are telling us that food prices have doubled, but that’s not right. The rise in prices more than doubled in the December quarter going up by only a little over 1%. And while you might not have noticed it greatly, a 1% jump in prices is great for Coles and Woolies, whose share prices are bound to be positively affected by the food inflation news. Stock market players are good at finding silver linings in dark clouds!

4. Russia, Ukraine agree to more talks despite rising tensions
With the neighbouring countries at loggerheads as Vladimir Putin’s Russia maintains that he does not intend to invade Ukraine, their talks on Wednesday arrived at no real conclusion other than to discuss matters more in two weeks’ time. The Kremlin’s primary order being that NATO not Ukraine as a member and issue a regression of forces in Soviet states. During talks yesterday, Russia and Ukraine. “together with representatives of France and Germany, reiterated their commitment to the 2015 Minsk peace agreement that ended widespread fighting in the Donbas region of eastern Ukraine between Kyiv’s forces and separatists backed by Russia. The negotiators also said they support unconditional observance of the cease-fire,” Bloomberg reports.

5. ASX to fall, markets respond to Fed meeting
Risk assets fell sharply following the FOMC meeting overnight, with some economists noting Fed chairman Jerome Powell sounded hawkish as he announced it will be raising interest rates in March. ASX futures down 46 points or 0.7% to 6874 at 7.19am AEDT, while the AUD is -0.6% to 71.10 US cents. On Wall St: Dow -0.6%, S&P 500 -0.7%, Nasdaq -0.2%. 2-year yield: US 1.03%, Australia 0.90%. 10-year yield: US 1.80%, Australia 1.94%, Germany -0.07%.