The impact of inflation on stock prices in the Czech Republic

Volume: 1/2024
Issue: 1
Author: Tereza Matasová, Kristýna Schandlová
Keywords: Inflation, inflation development, stocks, stock market, stock price, stock development

The aim of the study was to assess whether inflation between 2020 and 2023 affected the price of shares in the Czech Republic. Specifically, for the two companies studied, Česká spořitelna, a.s., and MONETA Money Bank, a.s. The method of data collection was content analysis, which was used to determine data on the development of inflation in the Czech Republic and the development of the share prices of the companies studied. Pearson correlation coefficient was used as a data processing method. The reliability of the coefficient r was verified using t - test. From the data obtained it is evident that the inflation trend in the Czech Republic was negative. It was mainly influenced by the energy crisis and the state of war in Ukraine. The development of the share price of Česká spořitelna, a. s. was positive, the value of the share was increasing. It was probably influenced by the post-pandemic economic recovery, when, after a long period of restrictions and uncertainty, the economy started to grow again. The price development at Komerční banka, a. s., was also positive. The value of the stock rose, thanks to strong financial results in the previous quarter, which boosted investor confidence in its performance and future growth. It is not possible to determine 100% what effect inflation has on the development of shares in the Czech Republic. It depends on how inflation affects the sector in which companies operate.

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