Purpose/Significance China is now in a momentous period of transformation of economic development mode and economic restructuring. There are not only academic but also constructive values to analyze comprehensively the potential pressure of inflation from the perspective of supply-side structural reform.

Method/ProcessThis paper firstly analyzes current state conditions. Then, it explains systematically prevention and control of inflation in the aspect of economic challenges, the differences from east and west supply-side schools and the potential pressure of inflation.

Result/Conclusion It is necessary to reform supply-side structure, integrate regulation of demand-side and supply-side, and set up satisfactory relationship between short-term measures and long-term goals; and to ensure healthy and steady development of economy by adjusting industrial structural, solving total imbalance and stimulating market vitality, and avoiding and eliminating potential pressures of inflation.