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Interview with Isabel Schnabel, Member of the Executive Board of the ECB, conducted by Marina Klepo on 29 September 2023
6 October 2023
From the ECB’s perspective, have the new [September inflation] data brought about any changes in terms of the drivers of inflation growth?
Overall, the recent news on inflation is encouraging. Headline inflation in the euro area has declined notably, and it now stands at 4.3% after peaking at 10.6% in October of last year. A large part of the drop can be attributed to a reversal of previous shocks, as energy and food price inflation have fallen rapidly. It is also a consequence of statistical effects, the so-called base effects, given that we had unusually large price increases a year ago. When it comes to core inflation, which excludes energy and food, it has proven more stubborn and now stands at 4.5% in the euro area, hence above headline inflation. However, its September print was lower than expected. It is welcome that inflation is coming down…