The present study examines the role of nominal income growth targeting (NIGT) in a small-open economy and shows that the central bank’s selection of a price in- dex crucially affects the performance of NIGT in a small open economy. NIGT based on a producer price index can always achieve the same outcome as the com- mitment policy. However, NIGT based on a consumer price index fails to create the same outcome as the commitment policy unless the stabilisation weight on the output gap is considerably small in the true loss function.