Tonight, the much-anticipated CPI will be released, and market volatility could be extremely intense. Prices could jump from 25,000 to 50,000 depending on the data released. The key is to manage your positions closely and don’t take unnecessary risks.

If you’re not familiar, CPI stands for Indeks Harga Konsumen (Consumer Price Index). It’s an indicator that shows changes in the prices of goods and services consumed by the public. Some people might think it’s just a boring macroeconomic issue, but trust me—CPI is something that directly affects your portfolio.

How does it work? When CPI rises, it means inflation is happening. Prices of goods go up, people’s purchasing power falls, and the value of your money decreases. Imagine the 100,000 rupiah you received last year might only be able to buy goods worth 97,700 rupiah today—that’s the real impact of inflation. Conversely, when CPI falls, the prices of goods decrease, consumers are happy, but producers start to feel squeezed. Their profits decline, production momentum slows down, and unemployment could increase.

For market investors, CPI is the main driver of central bank decisions. When CPI keeps rising, central banks usually raise interest rates or adjust reserve ratios to cool down the economy. These decisions directly affect capital markets. In general, when CPI rises, stock prices tend to rise as investors look for higher returns. But if CPI rises too much and the central bank is aggressive in raising interest rates, the market could actually come under pressure.

So tonight, seriously monitor CPI data. Numbers higher than expectations could trigger a big surge in volatility. Make sure your risk management is solid and don’t get too greedy. This is a time to be cautious, not to go all-in.