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Prolonged drought is now affecting even older vineyards in South Moravia, whose deep root systems have until now helped them withstand dry conditions. Wine experts say grape berries are becoming smaller in the hardest-hit areas unless vines can be irrigated. The impact varies depending on soil type, with limestone retaining water far better than sandy soils. Many growers have expanded irrigation systems beyond newly planted vines to protect older vineyards as well. Despite the dry weather, experts say this year's harvest still looks promising, although an early grape harvest could begin as soon as August.

The European Commission says Czechia has made insufficient progress in strengthening conflict-of-interest rules, particularly regarding transparency over beneficial ownership. In its annual rule of law report, the Commission also raises concerns about media legislation, noting that a government proposal to abolish licence fees for public service broadcasters has sparked worries about the future financing and independence of Czech Television and Czech Radio. The report further says no additional progress has been made on reforms aimed at improving transparency in media ownership. The Commission publishes its rule of law assessment for all EU member states each year.

Czechia had the European Union's second-lowest inflation rate in June, according to new data from Eurostat. Annual inflation fell to 1.1 percent under the EU's harmonised methodology, down from 1.8 percent in May. Only Sweden recorded a lower rate, at 1.0 percent, while Denmark ranked third with 1.8 percent. Across the EU, annual inflation eased to 2.9 percent from 3.3 percent in May, while inflation in the eurozone fell to 2.8 percent. Eurostat's figures differ from Czech national data because they use a harmonised methodology for comparing inflation across member states.

Czech carmakers produced about 780,000 passenger cars in the first half of the year, around four percent more than a year earlier, according to the Automotive Industry Association. About 40 percent of all vehicles manufactured were electric or hybrid models, including roughly 130,000 fully electric cars. Market leader Škoda Auto increased production by nearly 10 percent, while Hyundai's output fell by about 10 percent. Toyota's production edged up slightly, with all cars built at its Czech plant powered by hybrid drivetrains. Bus, truck and motorcycle production also increased during the first six months of the year.