Price price is the soul of market economy, is the foundation of social stability; is the most basic economic variable of market economy, it is the main goal of macroscopical adjusting control. With the economic development of our country. Price of the relation to the problem of people's livelihood. More and more attention. Serious research, scientific and rational analysis of price rise the influence that consumes to the dweller, it is our country economy the objective need of long-term steady progress. In recent years our country prices rising speed is accelerated apparently, become economy to run one of the most important issues in, greatly affect the daily life of residents, but also bring certain social instability. In 2011 the annual Beijing consumer prices rose 5.6% over the previous year, increase of government regulation. In order to solve this problem well, we must know the reasons for price increases and the negative effect. And on this basis to formulate the corresponding countermeasure. To stabilize prices, prevent currency Peng expansion, in order to maintain the health of our country economy, the steady and rapid growth.This article take CPI as the core concept, to in-depth analysis of the influencing factors of CPI. Boost prices causes common have the following situations: monetary element makes like that, the demand and cost drive. The front part of the article is that different aspects of analysis of the effects of CPI analysis, the second part is the empirical analysis of the factors affecting CPI: first through the factor analysis the influencing factors of CPI and extraction of several factors, followed by the VAR model to investigate the extraction factor of load in the highest representative factor 's influence on CPI. Finally, through theoretical and empirical analysis that the corresponding conclusion, and puts forward the reasonable proposal
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