Chicago Federal Reserve Bank President Austan Goolsbee said the June Consumer Price Index data was surprisingly benign, but cautioned against overreacting to a single month. The U.S. CPI rose 3.5% year-over-year in June, below the 3.8% consensus and decelerating from the 4.2% pace in May, with the decline in energy prices being the biggest contributor. Goolsbee noted that services inflation has been way too high and is not going away quickly, making him nervous, while describing the job market as remarkably stable without being good. He also highlighted an extreme divergence between house price inflation and the inflation of everything else, arguing that building more houses is necessary to slow or reduce housing prices.