UPDATE 1-UK inflation rate slows to 6.8% in July

Economists polled by Reuters had forecast that the CPI rate in the 12 months to July would drop to 6.8% from June's 7.9%, moving further away from October's 41-year high of 11.1% but still far above the Bank of England's 2% target. The BoE is watching core inflation – which strips out volatile food and energy prices – and consumer services prices closely.