For a definitive answer on the latest inflation figures, read this:
http://www.bankofengland.co.uk/Links/setframe.html
Or, if you can't be ar$ed - just accept that the inflation rate is a little under 2% and likely to rise a little above 2% over the remaining financial year, therefore the 3% pay increase is ABOVE inflation and represents a real increase of approx 1%.
It ain't that much, but most of us in the private sector will only get pay rises of between 1.5% and 3.5% (depending on performance), so 3% ain't that bad.
I served for 12 years in the AAC and one thing we all accepted was that you don't join up to get rich, so if you think you're worth more...PVR and get out there to make your millions.