By Herbert Lash and Bansari Mayur Kamdar NEW YORK (Reuters) – Wall Street rallied more than 1% on Wednesday after data showed U.S. inflation slowed more than expected in July and raised hopes the Federal Reserve will cut back on aggressively boosting interest rates. A sharp drop in the cost of gasoline helped the U.S. Consumer Price Index stay flat last month after advancing 1.3% in June, the Labor Department said. The CPI rose by a less-than-expected 8.5% over the past 12 months after a 9.1% rise in June. The data was the first notable sign of relief for Americans who have watched inflation s…