Decoding Euro Area’s inflation: on oil prices, labor costs & profit shares Final release shows Euro Area inflation at 1.7 % in 2018. Core inflation remained subdued at 1.0 % while rising energy prices drove inflation higher Recent developments in oil prices as well as oil futures indicate energy price inflation to decline in 2019 and 2020 Wage growth has picked up gradually since 2017 being well-balanced among Euro Area economies and sectors Profit shares are declining, thus, confidence in underlying inflationary pressures to emerge is rising