LONDON (Reuters) – The pound rose on Wednesday after data showed Britain’s annual rate of consumer inflation rose in December for the first time in 10 months and came in higher than expected, challenging expectations that Bank of England rate cuts are fast approaching. Sterling was last at $1.263, down 0.05% on the day, having been down 0.19% before the data. The euro was down 0.08% at 85.90 pence. (Reporting by Alun John; editing by Harry Robertson)