The estimates for Vietnam’s consumer price index (CPI) in January were just a 1% increase against December 2011.

This is the lowest monthly rise nearing Tet in the last ten years. In past years, the rate has been in between 2 and 3%, according to the General Statistics Office of Vietnam (GSO).

Garment and footwear products saw the highest rise, of 1.97%, against December 2011.

It is followed by the group of construction materials with 1.71%, presumably from a demand to Tet decoration and renovation. 

Alcohol and tobacco saw an increase of 1.17%, and entertainment and tourism services increased by 1.15%.

The group of restaurant and food services grew by 1.01% against December 2011.

CPI of Hanoi in January rose 0.96% compared to the previous month, a relatively small figure when compared with the nearly 2% seen in January, two years ago or the 4% of 2008.

Ho Chi Minh City witnessed a January CPI increase of 0.89% compared to December 2011.

This year, Vietnam targets to reduce CPI growth to a one-digit figure. Do Thuc, Head of the GSO said, the goal is achievable if the country continues implementing the monetary tightening measures set out in the Government's Resolution 11.

Curbing inflation is at the top of the Government's list of priorities for 2012. This concern will also be a driving force behind the decision making mechanisms of the State Bank of Vietnam in terms of setting lending interest rates. Their ultimate aim is to help ease capital shortage for businesses.