China’s economy has maintained at double-digit growth rate for over five years. Since the second half of 2007，consumer price of household has risen unceasingly. In the first half of 2008，the producer price of industrial products also showed a rapidly rising trend. Whether we can control inflation effectively or not is the key to maintain the good momentum of steady and rapid economic growth. And the transformation of economic development pattern and properly dealing with the impact of international economic turmoil should be the fundamental policy to avoid inflation and to achieve sound and fast economic development.