Korea changes inflation target measure

Korea will target a new measure of inflation for 2007-2009, the central bank has said.

The new inflation target of 2.5- 3.5% for 2007-2009 announced on 16 August will use the headline consumer price index (CPI) as its inflation target indicator instead of the core CPI, which does not include volatile energy and food prices.

The new target is numerically the same as the one for 2004-2006, but the change implies that the target has been reduced by around half a percentage point because core CPI