As a result, the sensex was down by about 450 points but after the company's clarification, the index finally closed marginally higher, at 52,552 points up 77 points on the day. On Monday there was panic among investors on Dalal Street in early trades since the sell-off in these stocks was strong. The fuel and light component rose to a shade over 9-year high in May due to an increase in global prices and imposition of higher taxes at home. This has also led to higher transportation costs which economists said has also fed into higher prices in other segments. Some of the price increase has also been attributed to the supply restrictions due to the localised lockdowns. Separate date released earlier in the day by the department for Promotion of industry and internal trade on Monday showed inflation, as measured by the wholesale price index, accelerated to an annual 12.9% in May, higher than the 10.5% in April and above the 3.4% deflation in May 2020. This was largely driven  by higher fuel and power prices, which shot up to their highest level in the 2011-12 series and a low base effect as well as increase in global commodity prices. Prices of vegetables eased in May but onion prices shout up. Economies said the increase in opinion prices could be due to logistical issues and higher demand. Inflation in t he fuel and power segment soared to and this could inch higher as due to high global crude oil prices and rebound in economic activity after the economy unlocks after the second wave cools down. "High CPI inflation will be a concern for RBI as it is higher than their estimate of 5%. Though the state's policy is that growth is more important which means that repo rate will not be touched, it will be a nagging issue especially if inflation remains in this region.
