Unit 3: UK inflation outside target range at 3.3%

This BBC article and video reports CPI inflation now outside the target range

http://news.bbc.co.uk/1/hi/business/7458209.stm article
http://news.bbc.co.uk/1/hi/business/7458861.stm video

These CH4 video clips go in to more detail

http://link.brightcove.com/services/player/bcpid1184614595?bctid=1614715546
http://link.brightcove.com/services/player/bcpid1184614595?bctid=1614611866

a) What is the target for CPI inflation?
b) What sort of inflation is the UK suffering?
c) Why do people appear to think inflation is much higher than the official rate?
d) Explain to them why their perceptions may be wrong and the offial rate may be correct
e) CH4 video: Why does the economist say higher interest rates are the only way of reducing inflation?
f) What conflicting macroeconomic objectives does the government face