To begin with, the policy objective of choice should be economic stabilisation, not inflation control. Policy makers need to choose as target a variable over which they can have some control. We cannot target inflation at 5 percent if 80 percent of that inflation is imported from abroad, and import prices rise 10 percent.
Whatever our policy, domestic prices are going to rise at least 8 percent. A more useful objective, in the open economy, is to stabilise external payments and receipts, and maintain a level of foreign exchange reserves which market agents find to be adequate. That creates a stable environment for business and investment planning, and is therefore the best platform for sustained economic growth.