There are several factors which can effect the inflation such as economic growth,the amount of money supply,the consume level and wage.In order to explore the cause of China's inflation,the author uses Granger Causality Test to analyze the relationship between inflation rate and the above factors.Then through establishing Autoregressive Distributed Lag Model,it is found that China's inflation rate is significantly associated with money supply and expectation of citizens.However,there is no strong correlation between inflation rate and the other factors.