UK inflation hits 3 pct as Bank of England mulls rate hike

Official figures show inflation in Britain rising a full percentage point above the Bank of England's target, a development that is set to reinforce market expectations that the central bank will raise interest rates next month for the first time in a decade.

The Office for National Statistics said Tuesday that consumer price inflation was 3 percent in the year to September. The last time inflation was higher was in March 2012.

The modest rise from the previous month's 2.9 percent was anticipated in the markets.

The central bank has given a series of hints in recent weeks that it will raise its benchmark rate from the record low of 0.25 percent at its next meeting on Nov. 2 as a result of above-target inflation.