Czech inflation declined from 1.6% to 1.4% yoy in February, coming in below estimates. Our forecast was 1.5% yoy, while the market consensus and the CNB estimate were both 1.6%. The February decline in annual inflation was mainly due to a lower food price growth.

Czech inflation declined from 1.6% to 1.4% yoy in February, coming in below estimates. Our forecast was 1.5% yoy, while the market consensus and the CNB estimate were both 1.6%. The February decline in annual inflation was mainly due to a lower food price growth.

Food prices reversed the increase seen in January and were the main reason for the deviation from our forecast. While food and non-alcoholic beverage prices rose by 2.7% mom in January, they fell by 1.5% mom in February. Similarly, after rising by 4.7% mom in January, alcohol and tobacco prices fell by 1.2% mom in February. The entire food price group, including all beverages and tobacco, then saw a decline of 1.6% mom in February, exceeding our forecast of -1.0% mom. Consequently, annual food price growth slowed from 1.9% in January to 1.2% in February.

Fuel prices increased in February, and the conflict in the Middle East poses an inflationary risk in the months ahead. Fuel prices rose by 1.1% mom in February, but this followed a combined decline of more than 4% in the previous two months. Along with a higher comparison base from the beginning of last year, this resulted in a substantial 8.6% yoy decline in fuel prices. Regulated prices fell by 0.1% mom in February, with household energy prices dropping by an average of 0.4% mom. Fuel and energy prices have recently been among the main reasons for falling headline inflation, but the current situation in the Middle East means they now pose an inflationary risk. The conflict has caused significant increases in oil and natural gas prices. The impact on inflation will depend on the level at which energy commodity prices remain and for how long. While the impact of more expensive oil on fuel prices is relatively straightforward, the situation is more complex for other energy prices, particularly given the growing popularity of fixed-price contracts among households. The impact should also be mitigated by the fact that suppliers purchase energy in advance and that gas consumption has fallen since the war in Ukraine began, partly due to investments in energy-saving technologies. Overall, the economy is more resilient to energy shocks than in the past.

Core inflation remained unchanged at 2.7% yoy in February. This was slightly above our estimate of 2.6% yoy, but slightly below the central bank’s forecast of 2.8% yoy. In contrast, growth in service prices slowed from 4.7% to 4.5% yoy in February. On a mom basis, service prices rose by an average of 0.5%, compared to an increase of 0.7% in February 2025. However, imputed rent growth remained unchanged at 5.1% yoy, reflecting the ongoing rapid growth in house prices. Growth in paid rents then eased slightly from 6.3% to 6.1% yoy. Meanwhile, the annual decline in goods prices deepened from 0.4% to 0.7%.

Colt CZ plans dual list the Euronext Amsterdam stock exchange. It also plans to increase its capital.

Both steps require shareholder approval at the General Meeting on April 10, 2026, at 2:00 p.m. The record date to participate in the meeting is April 3, 2026. With a standard T+2 settlement period, Colt CZ shares will be traded for the last time with the right to participate in the General Meeting on Wednesday, April 1, 2026.

Dual Listing: Shareholders will vote on admitting Colt shares to trading on the Euronext Amsterdam regulated market. Consequently, the shares will be traded on both the Prime Market of the Prague Stock Exchange and in Amsterdam. The shares will be fully interchangeable on both trading floors. This step should increase liquidity and prestige, making the shares more attractive, especially to large investors.

Capital Increase: Colt plans to issue a maximum of 9,395,586 new shares. The price range is set at CZK600–1,500. The board of directors may increase the capital several times, but only up to the specified amount. Only new shares will be sold. Proceeds will fund technology, modernization, increased production capacity, R&D, acquisitions, and debt reduction.

The stated number of new shares represents 15% of the outstanding shares.

Colt CZ plans dual list the Euronext Amsterdam stock exchange. It also plans to increase its capital.

Both steps require shareholder approval at the General Meeting on April 10, 2026, at 2:00 p.m. The record date to participate in the meeting is April 3, 2026. With a standard T+2 settlement period, Colt CZ shares will be traded for the last time with the right to participate in the General Meeting on Wednesday, April 1, 2026.

Dual Listing: Shareholders will vote on admitting Colt shares to trading on the Euronext Amsterdam regulated market. Consequently, the shares will be traded on both the Prime Market of the Prague Stock Exchange and in Amsterdam. The shares will be fully interchangeable on both trading floors. This step should increase liquidity and prestige, making the shares more attractive, especially to large investors.

Capital Increase: Colt plans to issue a maximum of 9,395,586 new shares. The price range is set at CZK600–1,500. The board of directors may increase the capital several times, but only up to the specified amount. Only new shares will be sold. Proceeds will fund technology, modernization, increased production capacity, R&D, acquisitions, and debt reduction.

The stated number of new shares represents 15% of the outstanding shares. It is unclear whether the current majority owner, Ceska zbrojovka Partners SE, will participate in the subscription. Ceska zbrojovka currently owns approximately 47% of the company, a stake that could shrink to 40% if it does not participate in the offering. However, it would still retain a majority stake.  

These steps could take place in the first half of this year. We would like to remind you that the last capital increase was related to the settlement of the SNC acquisition, when Colt issued 6,174,214 shares at a price of CZK 723 at the beginning of the year.