Africa Business Radio

Turkey's annual inflation rate has soared to a 19-year high, underlining the country's financial turmoil and alarm over its president's policies. Prices hit more than 36% in December as the cost of transport, food and other staples ate into household budgets. Most central banks raise interest rates to help cool inflation but Turkey has gone the other way. The lira shed 44% of its value against the dollar last year and fell another 5% on Monday before recovering to trade flat. The drop in the lira has made the price of inflation-fuelling imports more expensive, ranging from energy to many of the raw materials Turkey's manufacturers turn into exports.