Empirical Analysis on the Influence Factors of Inflation in China

To analyze the reasons for current inflation and minimize the adverse effects caused by inflation for people's life, based on the study of broad measure of money supply and inflation, the effect of consumer confidence index with inflation was studied. In this paper, relevant theories and knowledge were applied such as regression analysis method and economics to build the model on relationship among broad measure of money supply (M2), consumer confidence index (CCI) and the inflation through econometric software Eviews 6.0. The conclusion was drawn that there were relevance between the two compared factors and inflation. All these findings would be of use to analyze the reasons for inflation more perfect and be useful references to the research for the future.