Daily summary of the Czech economy: EP Group, Energie Baden-Württemberg AG (EnBW), Klarna and Raiffeisen Bank(20 May 2025)

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Overview of the latest economic events in the Czech Republic

PRAGUE - The Czech economy continues to face inflationary pressures, with consumer prices for some basic foodstuffs rising again in May. Six out of 13 monitored items rose in price, according to a preliminary survey by the Czech Statistical Office. The largest price increase was recorded for eydam, which rose by 7.5 %. Year-on-year, the most significant jumps were observed for eggs, the price of which rose by 52.8 %, and for butter, which rose by 22.3 %. These figures confirm the ongoing tensions in food inflation, which are negatively impacting lower income households.

The stability of the money market was consistent with stagnant inflation expectations and the absence of major impulses from the domestic economy. The situation on the Prague Stock Exchange has stabilised. The PX index returned to values close to Friday's historical high after a short correction. Shares of energy and banking titles led the growth, mainly due to investors' optimism about regional acquisitions and export performance.

Foreign investment

The major news of the day is the acquisition of EP Energy Transition (EPETr), a subsidiary of Daniel Křetínský's EP Group, which will buy a 50% stake in the German lignite power plant Lippendorf. It is taking over the stake from Energie Baden-Württemberg AG (EnBW). The second unit of the plant is already owned by another EPETr subsidiary, LEAG, which means that the group will take full control of the plant with this move. The transaction is subject to regulatory approval and is expected to be completed in early 2026.

The entry of the Swedish fintech company Klarna into the Czech Republic, which entered into a partnership with Komerční banka to develop BNPL (Buy Now, Pay Later) services, also resonates on the domestic market. The aim is to strengthen the digital payment ecosystem and gain market share in the fast-growing e-commerce transaction market.

The Austrian group Raiffeisen Bank International has announced the strengthening of its investment activities in the Czech Republic and plans to open a new innovation centre in Brno. The project is intended to attract technological talent and support the development of banking applications for the entire Central European region.

Significant events outside the Czech Republic with global impact

The planned merger between French luxury car manufacturer Bugatti and Croatian company Rimac continues to attract attention in Europe. The merger is expected to create a new leader in the field of electric supercars, with the help of the Porsche Group. The move confirms the strong position of the regional technology industry in the field of electric mobility.

US company Nvidia has announced the acquisition of Israeli AI startup RunAI for approximately $700 million. The deal further solidifies Nvidia's position as a dominant player in AI platform development and strengthens its developer base in the Middle East.

In Asia, there has been significant consolidation in the semiconductor industry, with South Korea's SK Hynix buying out the Chinese operations of US firm Micron Technologies, expanding its production capacity and securing a stronger position within geopolitical restrictions on chip exports.

In conclusion, May 20 brought key news from both the domestic economy and international trade. Six companies - EP Group, EnBW, Klarna, Komerční banka, Raiffeisen Bank International and Nvidia - played a major role in today's economic events. Stock market developments, a stable currency market and active foreign investment suggest that the Czech Republic remains attractive to global capital. These trends create room for further growth and innovation despite persistent inflationary pressures.

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