1140 GMT - U.K. domestic inflationary pressures look less threatening than the headline inflation indicates, Morgan Stanley economists say in a note. The latest data shows U.K. annual services inflation slowed to 3.4% in July, from 3.6% in June, although headline inflation rose to 2.9% in July from 2.6% in June. U.K. private-sector wage growth is subdued, underlying services inflation continues to ease, "while competitive retail conditions are limiting food-price pass-through", the economists say. A sustained energy shock could raise indirect and second-round inflation risks, they say. Nonetheless, weaker wage growth and subdued services inflation could absorb much of the first-round pressure, the economists say.