U.K. Inflation Hits 10-Year High, Stirring Expectations of Rate Rise

LONDON—Annual inflation in the U.K. accelerated to its fastest rate in a decade, strengthening expectations the Bank of England will be the first major central bank to lift interest rates from pandemic lows as worries over global inflation intensify.

Consumer prices increased 4.2% on the year in October following a 3.1% rise in September, the U.K.’s Office for National Statistics said Wednesday, the fastest rate of inflation since December 2011 and more than twice the BOE’s 2% target.