Vietnam inflation up slightly in January

Vietnam's monthly inflation rate picked up slightly in January, official data showed Friday, with consumption rising as the country prepares to celebrate the lunar new year holiday. Month-on-month, consumer prices increased by 0.69 percent in January, the General Statistics Office (GSO) said in a statement posted on its website, after a 0.51 percent increase in December. Consumer prices were up 5.45 percent year-on-year in January, according to the GSO figures. The lunar new year holiday, known as Tet, falls next Friday and is the most important annual festival for the Vietnamese. People tend to spend more on food, drinks and decorating their homes to welcome the new year. Demand for travel rises as migrant workers in the city return to the provinces to spend time with their families. Communist Vietnam is struggling with a host of economic woes, including sluggish domestic demand, a banking sector weighed down with high levels of toxic debt and record numbers of bankruptcies. Inflation slowed to 6.04 percent in 2013, down from the previous year's 6.81 percent. The country's economy grew 5.43 percent in 2013, picking up speed slightly after its worst performance in more than a decade in 2012, when GDP grew just 5.03 percent. Vietnam's authorities said earlier they were aiming for economic growth of 5.8 percent for 2014. The government has recently announced plans for a slew of privatisations of state-owned companies, including flag-carrier Vietnam Airlines, but has not yet provided specific details or a clear timeline.