The Prague Stock Exchange broke a two-day losing streak yesterday, and the PX index rose above 2600 points. The Czech Statistical Office will release final inflation data for June today, which is expected to confirm a slowdown to 1.5 percent. Industrial production in the Czech Republic increased by two percent year-on-year in May. Budějovický Budvar reported record production for the third consecutive year, with profits slightly declining. Severe spring frosts will cause this year's fruit harvest to fall by half.
The Prague Stock Exchange broke a two-day losing streak yesterday, and the PX index rose above the 2600 point level. It gained 0.6 percent to reach 2608.12 points. Shares in the energy company ČEZ and the entire banking sector contributed to this increase. Market activity was low.
The Czech Statistical Office will release final inflation data for June today. According to preliminary estimates, consumer prices increased by 1.5 percent year-on-year and decreased by 0.3 percent month-on-month in June. This slowdown brings the rate of price increases below the Czech National Bank's (CNB) two percent target. The easing was mainly due to a calming of the situation in the Middle East, which lowered fuel prices. Excessive price increases persist in services, which increased by 4.5 percent.
Industrial production in the Czech Republic increased by two percent year-on-year in May, accelerating from April's 1.5 percent growth. The increase in production was mainly supported by the production of computers, electronic and optical devices. Unemployment remained at 4.8 percent in June, the same as the previous month.
Budějovický Budvar achieved a post-tax profit of 356.3 million crowns last year, which is a decrease of 1.3 percent compared to 2024. The national company's turnover also decreased to 3.691 billion crowns, a reduction of 20 million crowns year-on-year. The brewery recorded record production for the third consecutive year — producing 1.945 million hectoliters of beer, an increase of 0.95 percent compared to the previous year.
The fruit harvest in the Czech Republic is expected to decrease by half this year due to severe spring frosts, falling from last year's 146,243 tons to 68,445 tons. Compared to the average of the past five years, the harvest will decline by 44 percent. This estimate was made by the Central Control and Testing Institute for Agriculture as of June 15th. According to the Czech Fruit Growers Association, the losses for fruit growers in terms of revenue are expected to exceed one billion crowns.
The ČEZ Group has secured additional financing of 8.9 billion crowns through an existing credit line. This transaction strengthens the group's financial position as it invests heavily in the transformation of the energy sector and is preparing for the development of small modular reactors in cooperation with the British company Rolls-Royce SMR.