Offshore banking better outside Europe?

Offshore banking funds could provide better returns when they are based outside of Europe, as a recent report from the European Commission reveals inflation in the eurozone hit a 20-month peak in July.

High rates of inflation might erode profits on offshore banking accounts despite favourable tax conditions and may lead individuals with private wealth to consider funds outside of the continent.

The level reached 1.7 per cent in the euro area, up from 1.4 per cent in June.

At the same time last year, inflation was hovering at -0.6 per cent, indicating the degree to which it has expanded over the past 12 months.

Low annual rates of inflation were to be found in Ireland (-2.4 per cent) and Latvia (1.8 per cent), with the highest originating in eastern Europe, where Hungary topped the table at 5.1 per cent.

Increased costs on commodities such as fuel and luxury items helped push the figure higher, while clothing and footwear exerted the greatest downwards pressure. ADNFCR-2318-ID-800026199-ADNFCR