Interview with Isabel Schnabel, Member of the Executive Board of the ECB, conducted by Balázs Korányi on 1 December 2023

5 December 2023

What is your take on the unexpectedly benign November inflation reading? Does the recent string of downside surprises change your view about the inflation trajectory?

“When the facts change, I change my mind. What do you do, sir?” I’m sure you know this famous quote that is often attributed to John Maynard Keynes.

Over the past year headline inflation has declined rapidly. This was due to the reversal of the previous supply side shocks and was mainly driven by energy and food prices. Base effects played a significant role.

The November flash release was a very pleasant surprise. Most importantly, underlying inflation, which has proven more stubborn, is now also falling more quickly than we had expected. This is quite remarkable. All in all, inflation developments have been encouraging.

That said, despite these positive developments, I still…