Offshore private banking to avoid high inflation?

Offshore private banking may be one option for those hoping to avoid high inflation, as one group claims the level will remain above target for the foreseeable future.

Andrew Goodwin, senior economic advisor to the Ernst and Young ITEM Club, stated: "We expect inflation to remain above target until early 2012," adding factors such as appreciating food and cotton prices will combine to keep it elevated.

For those with personal wealth concerned about the effects of poorly-controlled inflation, offshore private banking could offer accounts with favourable rates, as well as protecting assets from excessive taxation.

The wealth management expert observes the "key factor" remains January's VAT rise, a move calculated to raise revenues and help the country service its public deficit, after which inflation is expected to retreat.

Wednesday's (October 20th) spending review ushered in a number of changes designed to lower state outgoings, including a seven per cent funding cut for local councils, come into force in April 2011.  ADNFCR-2318-ID-800136786-ADNFCR