Investing.com -- Chicago Federal Reserve President Austan Goolsbee said Tuesday that consumer price inflation data for June showed encouraging signs but cautioned that one month of data is not sufficient to determine if inflation is returning to the 2% target.

"I would be feeling a lot better" if there were several months of such data, Goolsbee told the Kenosha Area Business Alliance in Kenosha, Wisconsin. "I'm heartened by this CPI today but we need a lot more than one month to think that it is going well."

Goolsbee described the June consumer price inflation data as "surprisingly benign" and said officials should avoid overreacting to a single month's report.

The Fed official noted that services inflation has been running too high but said Tuesday's data showed improvement in that area. He added that if the PCE versions of inflation matched the CPI readings for several months, his outlook would improve.

Goolsbee also commented on the labor market, describing it as stable without being strong.