Daily summary of the Czech economy: inflation, Microsoft, Erste Group Bank, Statech, Baker McKenzie and business rates growth (12 November 2025)

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Overview of the latest economic events in the Czech Republic

The PX index on the Prague Stock Exchange again recorded a significant growth - it closed at 2484,25 points, an increase of 0.87 %. This is the fifth consecutive historical high. The market growth was mainly driven by shares of banking institutions - for example, Komerční banka, Česká spořitelna or Moneta Money Bank - while the securities of the CEZ energy group fell after the publication of three-quarter results. In addition, the koruna strengthened against the euro and the dollar, which boosted investor sentiment.

Year-on-year inflation in the Czech Republic in October 2.5 %, month-on-month prices rose by 0.5 % - compared to September, when inflation was at 2.3 %. The Czech Statistical Office (CZSO) confirmed its preliminary estimate. Analysts said that rising food prices and sustained growth in services prices are the main drivers. The Czech National Bank (CNB) has warned that price developments require maintaining tight monetary conditions.

Foreign investment

In the context of foreign investment, the news that an American technology company Microsoft invests 10 billion dollars (approximately CZK 210 billion) in the construction of an artificial intelligence data centre on the coast of Portugal. According to Bloomberg, the plan was announced by company president Brad Smith at the Web Summit conference in Lisbon. The capital injection is one of the US firm's largest investments in Europe this year and signals a growing push for regional infrastructure for data centres and AI services. It may have an indirect impact on the Czech economy - through competition in the digital sector, pressure to build infrastructure and a possible over-investment in the region.

In the corporate area, specific transactions were announced: for example, the financial group Commercial Bank has completed the acquisition of a specialist fintech firm focused on mobile payments, the group CEZ announced the sale of a minority stake in an energy subsidiary in Central Europe, and Moneta Money Bank entered into a partnership with an international banking group Erste Group Bank, expanding its services in the region.

Further ČSOB Insurance Company took over a smaller specialist cyber insurance firm, an investment company KKCG has decided to buy a renewable energy startup and logistics firm Czech Post has launched a collaboration with an international delivery player to digitise its services. These transactions indicate an active M&A scene domestically, while strengthening the Czech market's connection to global investment flows.

In addition, the acquisition was confirmed in which the group Statech acquired the company Sico Rent, and her partner was a law firm Baker McKenzie. These legal service operations confirm the growing interest of investors in commercial real estate and technology assets in the Czech Republic.

Significant events outside the Czech Republic with global impact

On a global scale, two key trends have emerged in recent days that have the potential to affect the Czech economy. The first is growth in business tariffs and escalating tensions in international trade. According to a BusinessEurope survey, businesses in Europe expect the impact of US tariffs to be more significant in 2026 - they could reduce eurozone GDP growth by 0.5 to 0.6 percentage points. At the same time, growing uncertainty about US and Chinese trade policy is fuelling volatility in both commodity and industrial input markets.

The second important factor is oil price development. According to the International Energy Agency (IEA), global production and inventories of liquid fuels are increasing, with the IEA reporting a supply increase of 760,000 barrels per day in September and an estimate of 3 million barrels per day for 2025. The U.S. Energy Information Administration (EIA) forecasts the average price of crude oil type Brent in the fourth quarter of 2025 around 62 USD per barrel, while in 2026 it could fall to 52 USD per barrel. On 11 November 2025, Brent crude oil was trading at 64.96 USD per barrel, US light crude oil WTI then on 60.82 USD per barrel. Growth is supported by higher fuel premiums and concerns about reduced supplies from Russia. These developments are creating uncertainty in energy prices and are having an impact on inflation and the cost structure of Czech industry.

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