Czech Producer Prices Mixed in September as Agriculture Cools and Services Stay Hot

Czech producer prices showed a divided picture in September, suggesting that inflationary pressures are gradually easing but remain uneven across sectors. Agricultural costs lost momentum after a strong summer, industrial producers faced weaker demand, while construction and service prices continued to edge upward, driven by domestic activity and higher labour costs.

Agricultural producers experienced their first notable slowdown in several months. Prices fell compared with August, mainly due to cheaper vegetables, grains and oilseeds, while livestock and dairy prices offered partial support. Compared with last year, farm prices were still higher, though the pace of growth slowed considerably. Animal products, particularly eggs, milk and beef, remained significantly more expensive than a year earlier, while fresh vegetables and potatoes dropped sharply, highlighting how weather conditions and fluctuating consumer demand continue to influence the market.

Industrial prices also declined, reflecting a combination of softer global demand and easing energy costs. The biggest decreases came from the energy and chemical sectors, which have been under pressure from falling wholesale prices. Manufacturers of vehicles and food products saw smaller reductions. Compared with September 2024, producers were charging less for energy and raw materials but slightly more for food and building-related goods such as wood and non-metallic minerals. This divergence indicates that while energy-driven inflation has receded, other production costs remain sticky, keeping margins tight across the industrial sector.

Construction activity continued to display resilience, with work becoming slightly more expensive in September despite a modest dip in building material costs. The sector remains supported by renovation projects and public infrastructure spending, which have offset slower residential development. Builders continue to face higher labour expenses and logistical challenges, contributing to the steady rise in overall construction costs.

The strongest price growth came from the service sector, where business-related activities such as advertising, broadcasting and media surged. Double-digit monthly increases were reported in these categories, suggesting strong seasonal demand. Other professional services, including employment, accounting and legal support, also rose modestly, while transport and property-related services registered slight declines. Over the past year, services have been one of the most persistent sources of cost growth, driven by rising wages and the expanding role of technology and marketing in business operations.

Across the European Union, similar patterns were visible. According to Eurostat’s preliminary data for August, industrial producer prices declined across the EU, with the Czech Republic’s results broadly matching the regional trend. The Czech decline was smaller than in neighbouring Germany and Poland, pointing to a relatively stable industrial base despite subdued demand.

Overall, September’s figures suggest that the Czech economy is moving towards balance after several turbulent years, though the adjustment is uneven. Falling input costs in agriculture and manufacturing could help ease inflation in the months ahead, but construction and service sectors remain under upward pressure. Analysts believe that the key to sustaining this improvement lies in stable energy markets and continued moderation in global commodity prices.

As one Prague-based economist observed, “We’re no longer in a period of runaway costs, but this isn’t full relief either. The Czech economy is settling into a slower, more selective phase of adjustment where each sector tells its own story.”

Source: CZSO and Eurostat

Poland’s 2024 GDP Growth Revised Up as Economy Maintains Steady Course into 2025

Poland’s economy grew slightly faster in 2024 than previously reported, according to new data released by Statistics Poland (GUS), while early 2025 figures indicate the recovery has steadied but begun to lose some momentum amid weaker external demand. The updated figures reflect small but significant adjustments following the integration of final annual results, financial-sector data and revised trade statistics submitted for the EU’s autumn reporting cycle.

GUS now estimates that Poland’s real GDP grew by 3.0% in 2024, a marginal upward revision from earlier assessments of 2.9%. The improved result was driven by stronger investment spending and firm household consumption through the second half of the year. The final quarter of 2024 was particularly robust, with growth reaching 3.5% year-on-year as domestic demand rebounded from earlier cost pressures.

The momentum continued into 2025 but at a slightly slower pace. Growth in the first quarter remained steady at 3.2%, while the second quarter was revised down to 3.3% from the initial 3.4%. GUS attributed the adjustment to a softening trade balance during the spring months, as exports slowed while imports picked up with renewed domestic activity.

Household consumption continued to underpin growth, rising around 1.7% year-on-year in early 2025, supported by stable employment and gradual real wage recovery. Investment activity remained resilient, reflecting an increase in spending on construction and equipment projects, helped by EU-funded infrastructure programmes. However, weaker demand from Germany and other EU partners weighed on exports, slightly reducing the overall contribution from foreign trade.

Compared with earlier estimates, the changes to GDP levels were modest — mostly between 0.1 and 0.2 percentage points — confirming the strength of Poland’s post-pandemic recovery and the stability of its domestic drivers. “The updated data highlight a maturing phase of growth rather than a reversal,” said one Warsaw-based economist. “Household spending remains firm, but global trade headwinds are clearly being felt.”

Domestic demand expanded by just under 4% in 2024, while net exports subtracted around 0.3 percentage points from overall growth due to the widening goods deficit. Government spending remained broadly neutral, neither adding nor subtracting from the total. The revisions also incorporated updated information from the public finance and corporate sectors, aligning the national accounts with Eurostat’s European System of Accounts (ESA 2010).

Across the European Union, Poland remains one of the bloc’s stronger performers. Eurostat data for mid-2025 show EU GDP expanding by just 1.3% year-on-year, underscoring Poland’s above-average pace. Other Central European economies — notably Czechia, Hungary and Slovakia — posted growth closer to 2%, reflecting weaker industrial output and tighter financing conditions.

Looking ahead, analysts expect growth to moderate gradually into 2026 as high borrowing costs, fading fiscal support and weaker export demand take effect. The Ministry of Finance currently projects GDP growth of 2.8–3.0% next year, while the National Bank of Poland (NBP) anticipates that interest rate cuts could begin in early 2026 if inflation remains within its target range.

Despite the slower global outlook, economists view Poland’s fundamentals as sound. Rising wages, strong employment and a steady inflow of EU funds continue to underpin domestic activity. Business confidence has also improved as inflation recedes and energy markets stabilise.

The updated GDP release reinforces Poland’s position as a resilient economy within the EU — one that has transitioned from recovery to sustainable, if slower, expansion.

Source: GUS, Eurostat and NBP

ESMA Finalises ESG Ratings Standards: Lighter Burden, Clearer Rules for 2026

The European Securities and Markets Authority (ESMA) has finalised the detailed rulebook that will shape how companies providing ESG ratings operate in the EU. The new standards, approved on 15 October, simplify earlier proposals but keep firm expectations around transparency, independence, and governance. They will take effect on 2 July 2026, once endorsed by the European Commission and reviewed by the European Parliament and Council.

The framework forms part of the EU’s wider effort to make environmental, social and governance (ESG) ratings more consistent and credible, amid growing investor reliance on such scores to steer sustainable investment decisions.

A More Streamlined Approach

Following months of industry feedback, ESMA eased some of the most demanding aspects of the draft rules. The regulator scaled back the amount of information companies must submit when applying for authorisation, limited ownership mapping to parent companies and subsidiaries, and replaced detailed personal data requests with broader team-level information.

In another shift, companies will no longer need to provide complex data models or assumptions during the approval process—only a clear explanation of their methodologies. The same proportional approach applies to firms outside the EU seeking recognition, who will now submit simpler lists of the ratings they plan to distribute in the bloc.

Maintaining Independence Without Overreach

ESMA kept its focus on avoiding conflicts of interest between ESG rating work and other business activities. However, the regulator dropped prescriptive requirements such as separate office space or access systems, choosing instead to allow flexibility as long as independence can be demonstrated.

Firms will be expected to have robust internal controls, including restricted data access, conflict-of-interest declarations renewed each year, and periodic assessments of how effectively safeguards are working. These measures aim to ensure ratings remain objective even when produced within larger, diversified organisations.

Clarity for Public Disclosures

On public transparency, ESMA has opted for a simpler format. Companies will still need to publish information about their methodologies and governance, but they can now use cross-references or links to other documents instead of repeating data.

The final standards drop the earlier proposal requiring firms to name every rated company, focusing instead on how methodologies are applied and updated. Providers will also have to explain how they gather and verify input from rated entities, use scientific evidence, and account for both risk and impact considerations. Clear rules will now define what qualifies as a “material change” in a methodology, helping investors understand how and when ratings evolve.

What This Means for the Market

For ESG rating providers, the revised standards represent a more manageable compliance effort, though still one requiring careful preparation. Firms operating within large financial groups will need to revisit how they separate ESG rating activities from other functions such as research or investment management.

Financial institutions and investors relying on these ratings can expect greater consistency and insight into how scores are formed. The focus on clear documentation, engagement, and independence is intended to make ESG ratings easier to interpret and more trustworthy across the EU.

The rulebook now moves to the European Commission for formal adoption, with application scheduled for mid-2026. It marks another milestone in Europe’s ongoing drive to bring accountability and transparency to sustainable finance—one that will likely influence global practices as other jurisdictions look to follow suit.

Source: CMS

EU Divided Over Flight Delay Compensation as Lawmakers Back Passenger Rights

European lawmakers have voted to uphold one of the most recognizable protections for travellers: compensation for flight delays of more than three hours. The decision, passed by the European Parliament’s legal affairs committee this week, reaffirms the chamber’s support for strong consumer rights, even as EU governments push to loosen the rules in favour of airlines.

The reform marks the first major review of Europe’s passenger rights framework in more than a decade. While lawmakers agreed to modernize elements of the existing system, they rejected proposals from the Council of the EU to raise the delay threshold to four or even six hours before passengers could claim financial compensation. Parliament’s stance preserves the principle that travellers who arrive three hours or more behind schedule are entitled to reimbursement ranging from €300 to €600, depending on flight distance.

The Parliament’s lead negotiator, Bulgarian MEP Andrey Novakov, said the decision was about protecting everyday citizens, not abstract regulations. Lawmakers also backed measures requiring airlines to allow cabin luggage free of charge, seat children next to parents without added cost, and speed up refund procedures when flights are cancelled.

Consumer groups praised the outcome as a clear victory for passengers. The European Consumer Organisation called the vote “encouraging,” saying it reinforced the idea that consumer rights should evolve toward greater protection, not less.

But airlines and several EU member states have pushed back, warning that the three-hour rule is too rigid. Industry representatives argue that extending the limit would reduce unnecessary payouts caused by issues outside their control—such as weather or airport congestion—and allow carriers more time to deploy backup aircraft or crews. Some governments, including France, Italy, and the Netherlands, have expressed support for raising the delay window, claiming that aligning rules with operational realities could improve long-term reliability and environmental efficiency.

The European Council’s own position, agreed in June, would lengthen the delay requirement to four hours for shorter flights and six hours for long-haul journeys. The plan also revises compensation levels and clarifies what qualifies as extraordinary circumstances exempting carriers from liability.

This sets the stage for tense negotiations among the Parliament, the Council, and the European Commission. Parliament’s delegation is expected to enter talks with a strong mandate to resist any rollback of passenger entitlements. Supporters of the current system say the three-hour rule has become a cornerstone of European travel rights and a symbol of accountability in the aviation industry.

Whether that standard survives the upcoming negotiations will reveal how far the EU is willing to go to balance passenger protection against the financial realities of a struggling airline sector.

Report Examines the Market Realities of Modular Construction

A new white paper from Periskop Partners provides a clear and data-driven look at how modular construction could help address housing shortages and cost pressures in Europe. The report, “Modular Construction at a Glance: Market, Opportunities, and Key Success Factors,” presents modular building as an effective approach for accelerating project delivery and improving sustainability, while also highlighting the practical limits that developers and investors must consider.

According to the analysis, factory-based production can shorten construction timelines, improve quality control, and reduce on-site waste and emissions. The use of digital planning tools such as Building Information Modelling (BIM) and automation technologies further enhances coordination between stakeholders and minimizes delays. However, the authors caution that these efficiencies depend on early decision-making, standardized processes, and strong alignment between designers, manufacturers, and contractors.

The report emphasizes that modular systems are not suited to every project or location. Transport logistics, site access, and early capital commitments can affect feasibility, while design flexibility remains more restricted than in conventional construction. Successful adoption, the study notes, requires disciplined planning from the earliest project stages and a clear understanding of where modular methods provide the greatest benefit.

In assessing the DACH region’s market, Periskop Partners finds a fragmented landscape made up of diverse suppliers—from timber specialists to industrial steel module producers—each offering different approaches to sustainability, prefabrication depth, and cost structure. The report offers a comparative overview to help developers and investors evaluate potential partners and navigate this evolving sector.

While modular construction continues to attract growing interest as a solution for the housing and public infrastructure sectors, Periskop’s research strikes a realistic tone. It positions modular building as a promising but complex tool that demands careful planning, reliable partners, and long-term investment in industrial capacity. The findings suggest that modular construction’s value lies not in replacing traditional methods outright, but in integrating off-site manufacturing where it offers measurable advantages in speed, quality, and sustainability.

Photo: Lars Meisinger, CEO at Periskop Partners ©Periskop Partners

Source: Periskop Partners

YIT Advances Third Phase of Ranta Barrandov Project in Prague 5

Developer YIT Stavo has completed the main structural works for the third phase of its Ranta Barrandov residential project in Prague 5. The phase includes 57 apartments, of which less than half remain available for sale. The buildings’ frameworks, roofs, ceilings, and exterior walls are finished, while installation of windows and interior fittings is now under way. Work on wiring, facades, plastering, and interior layouts is progressing in parallel.

The new phase comprises two residential buildings and one mixed-use building. Apartment sizes range from 30 to 84 square meters in configurations from studios (1+kk) to three-room units (3+kk). The development includes several modern comfort features such as underfloor heating, triple-glazed windows, and smart home readiness. Upper-floor units will include air conditioning, and preparation has been made for external shading systems. Shared facilities will include storage for strollers, a space for washing bicycles and pets, and parking areas. Three commercial units on the ground floor are planned for small-scale retail or services.

According to Dana Bartoňová, Sales Director at YIT Stavo, the project is on schedule and continues to attract steady demand for energy-efficient housing in the Barrandov district. She added that the developer plans to follow this phase with a fourth and final stage of construction.

Consistent with YIT’s focus on sustainable design, the project will feature photovoltaic panels to generate on-site renewable energy and heat pumps as the primary source of heating. Portions of the structure use prefabricated elements to improve construction efficiency, while green roofs, LED lighting, and charging points for electric vehicles—including both private wallboxes and public chargers—are also part of the plan. Landscaping and new greenery will form an integral part of the completed development.

Ranta Barrandov is located in a quiet part of Prague 5, close to public transport links connecting to metro lines B and C. The area offers schools, shops, restaurants, and healthcare facilities within walking distance, as well as easy access to Prokopské údolí, Barrandovské skály, and Malá Chuchle Forest Park, providing residents with proximity to both urban amenities and green space.

REIT Markets Fall as U.S. Office Sector Leads Weekly Declines

Real estate investment trusts (REITs) mirrored broader market weakness in early October, with the U.S. sector posting its sharpest drop in several months. All major U.S. property indexes ended the week to October 10 lower, led by steep losses in office-focused funds, which were hit hardest as investor sentiment turned risk-averse.

The overall U.S. REIT benchmark recorded a fall of more than 3 % for the week, in line with declines in major equity indexes such as the S&P 500. Analysts linked the pullback to renewed uncertainty around interest rate expectations and slower leasing activity across parts of the commercial market. Office REITs registered the deepest losses, slipping by more than 8 %, while hotel and healthcare trusts also weakened. Only storage-oriented funds saw limited movement, reflecting their more stable income streams.

The downturn underscores how sensitive real estate equities remain to broader economic signals. Despite evidence that inflation in the United States continues to moderate, investors appear wary of prolonged higher financing costs that could weigh on property values and refinancing activity.

Across the Atlantic, the mood was more subdued. European-listed REITs also edged lower over the same period, but declines were modest compared with those in the U.S. The main European real estate index slipped by less than one percent, suggesting that regional markets were less affected by the latest bout of investor caution.

Market analysts note that European REITs have shown relative resilience in recent months, supported by signs of economic stabilization and fewer interest rate shocks. However, the sector remains constrained by low transaction volumes and a cautious approach from lenders.

While the latest movements are unlikely to signal a structural shift, they highlight the fragile balance facing real estate investors worldwide. As central banks prepare to adjust policy rates heading into 2026, both U.S. and European property markets remain under scrutiny for signs of how the next phase of monetary easing—or delay—could shape valuations in the months ahead.

Source: S&P Global

Panattoni Begins Construction of New Logistics Park in Rzeszów, Signs Three Tenants for First Phase

Panattoni has started work on a new logistics complex in the Podkarpacie region, continuing its expansion in southeastern Poland. The developer, acting on behalf of a real estate fund managed by Jet Investment, has acquired a 13-hectare site for Panattoni Park Rzeszów North II.

The first stage of the project will include two buildings totaling more than 42,000 square meters, with three tenants already confirmed. Once fully developed, the park will provide over 110,000 square meters of modern industrial space.

The first facility, covering about 7,300 square meters, is being constructed as a build-to-suit project for a major courier company that plans to open a regional sorting center in late 2026. Construction is scheduled for completion six months earlier to allow for installation of automated logistics systems.

A second hall of around 35,000 square meters will be developed concurrently. Space has already been secured by a logistics operator (9,900 sqm) and an automotive e-commerce company (4,000 sqm), while the remaining area is being marketed to potential tenants.

The investor, Jet Industrial Lease SICAV, is a Central European fund focused on industrial properties and managed by Jet Investment, which also operates private equity and venture capital portfolios.

Located near the A4 motorway and S19 expressway (Via Carpathia), the site provides direct access to regional and international transport corridors linking Poland with Slovakia and Romania. Rzeszów Airport lies just four kilometers away, and the city center is within a ten-minute drive.

The complex is being developed to BREEAM Excellent standards, incorporating measures to reduce energy and water consumption, optimize air quality and acoustics, and increase natural lighting. One tenant has also chosen to install photovoltaic panels to support on-site renewable energy generation.

Panattoni has been steadily expanding in the Podkarpacie region, where it has already delivered nearly 350,000 square meters of industrial space, including facilities for Phoenix Contact E-Mobility, DB Schenker, LPP, and BSH Home Appliances Group. The company’s continued activity in the region reflects strong logistics and manufacturing demand driven by its proximity to cross-border trade routes and a skilled local workforce.

REWE Expands Autonomous Delivery Robot Service in Hamburg

German retailer REWE has launched the next phase of its autonomous delivery program in Hamburg, introducing an upgraded fleet of self-driving delivery robots under the banner REWE Lieferbot 2.0. The initiative follows a six-month pilot in Eimsbüttel last year, which tested both the technical feasibility and public response to the service.

The new phase is being deployed in Barmbek, where residents living near the REWE store on Holsteinischer Kamp can order groceries online through a dedicated app and receive deliveries to their doorstep. The compact, wheeled robots will operate Monday to Saturday between 8 a.m. and 9 p.m., serving an area of up to two kilometers around the store.

Each robot weighs around 35 kilograms, travels at walking speed, and can carry about 32 liters of groceries. They navigate sidewalks using a combination of 360-degree cameras, sensors, and artificial intelligence, stopping automatically when detecting pedestrians, cyclists, or obstacles. A single charge powers them for up to 18 hours, and according to REWE, the energy consumption for an average delivery is roughly equivalent to that needed to boil water for a cup of tea. Deliveries are typically completed within an hour of ordering, although some items — such as frozen foods, fresh meat, or alcohol — are excluded due to temperature and safety constraints.

The technology comes from Starship Technologies, an Estonian firm specializing in short-range delivery robots that are already in use in cities such as Milton Keynes, Tallinn, and Helsinki. All robots are TÜV-certified and monitored remotely by human operators to ensure safety and reliability.

Hamburg’s Senator for Economic Affairs, Labour and Innovation, Melanie Leonhard, described the project as a positive example of how cities can foster responsible innovation. She noted that Hamburg has become a testing ground for autonomous transport systems, from delivery robots to driverless buses.

REWE’s innovation manager, Dana Eisler, said that the second-generation rollout aims to make shopping more convenient while cutting traffic emissions and reducing reliance on car deliveries. She emphasized that automation can complement rather than replace existing logistics networks, offering a sustainable and efficient way to serve local customers.

With this pilot, REWE continues to build on its investment in digital retail and last-mile delivery. The company reported turnover of €31.6 billion in 2024 and employs more than 170,000 people nationwide. If the Barmbek rollout proves successful, similar autonomous delivery services could be introduced in other parts of Hamburg and across Germany.

Fact-checking confirms that the specifications and claims align with Starship Technologies’ existing operational data. The robots’ range, energy use, and safety certification are consistent with deployments elsewhere in Europe. While still in early stages, the initiative represents a meaningful shift toward cleaner, smaller-scale urban logistics that blend technology with environmental responsibility.

Source: REWE

Ten Climate Technologies Identified as Catalysts for a Healthier Planet

A new global report highlights ten technologies that could reshape how societies produce food, generate energy, manage water, and build cities in response to climate change. The study, published by the World Economic Forum in partnership with scientific publisher Frontiers, calls for rapid scaling of existing innovations that could help stabilize environmental systems and support sustainable growth.

The 10 Emerging Technology Solutions for Planetary Health report draws on expert research and data modelling to identify technologies that can both reduce emissions and strengthen ecosystems. The list includes carbon-storing concrete, precision fermentation for food production, and next-generation desalination for water-scarce regions.

According to the authors, these solutions already exist but remain underused due to financial, regulatory, and infrastructure hurdles. They argue that combining technology with political commitment and cross-sector cooperation could help address several of the world’s most pressing environmental challenges.

New Technologies, Old Challenges

Among the highlighted innovations is regenerative desalination, which uses renewable energy to turn seawater into drinking water with much lower energy consumption than traditional methods. Early pilot projects in Europe and North America suggest the approach could be vital for arid regions such as the Middle East.

Another promising field is modular geothermal power, designed to deliver constant renewable electricity using compact, factory-built units. Unlike wind or solar power, geothermal plants provide round-the-clock energy, offering stability to national grids.

In agriculture, soil health technologies—ranging from AI-based sensors to microbial soil treatments—aim to restore fertility and increase carbon storage. Meanwhile, methane capture systems are being developed to detect and convert leaks from farms and landfills, offering one of the fastest ways to slow global warming.

In construction, carbon-locking concrete could significantly lower emissions from the world’s most widely used building material by using recycled aggregates and trapping CO₂ permanently within the material.

Combining Innovation with Governance

The report stresses that technological progress alone will not deliver planetary stability. It points to the need for long-term investment, supportive policy, and open data-sharing among governments, industry, and academia. Without coordination, the authors warn, even the most promising technologies could stall at the pilot stage.

The analysis also shows how digital monitoring tools, such as advanced satellites and real-time Earth observation systems, are enabling faster detection of floods, droughts, and deforestation, improving disaster preparedness.

Jeremy Jurgens, Managing Director at the World Economic Forum, said the findings are meant to help global leaders “see what’s already within reach” and act decisively before environmental thresholds are crossed. Frederick Fenter, Chief Executive Editor at Frontiers, emphasized the importance of open scientific collaboration, describing innovation as a “collective exercise in planetary repair.”

A Broader Shift in Climate Strategy

The report’s release coincided with the Forum’s Annual Meeting of the Global Future Councils in Dubai, which gathered over 500 leaders to discuss how emerging technologies can be deployed responsibly. The authors note that these ten innovations, while diverse in scope, share a unifying goal: to replace extractive models with regenerative systems that benefit both people and planet.

The document serves as both a call to action and a roadmap—arguing that innovation, if scaled wisely, can still reverse some of the damage already done. The next phase, it concludes, depends not on invention but on the world’s willingness to act.

Source: WEF

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