Pound Higher as UK Exits Deflation

The Great Britain pound was generally higher today after the data showed that the United Kingdom exited deflation last month. Other economic reports were not as good, but that did not prevent the currency from rising.
The Office for National Statistics reported that the UK Consumer Price Index rose 0.1 percent in May after falling at the same rate in the prior month. Not everything was positive as the report said:

Despite rises in the price of food and motor fuels between April and May, prices for these goods are still lower than a year ago, meaning that they are still pulling the rate of inflation down. Historically, these prices have had a large upward push on inflation but this has changed over the last year.

Nevertheless, this did not hinder the pound’s rally.
GBP/USD rose from 1.5601 to 1.5630 and GBP/JPY edged up from 192.53 to 192.81 as of 14:58 GMT today.

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