Recently, the economy of China is in a marginal stagflation situation with slow growth rate and the rising of price. The main factors hindering high-speed economy growth of China include the reduced demographic dividend, the low conversion rate of saving to investment and imperfect institution, however, the main factors causing inflation are the erasing of government fiscal and monetary policies, the increasing enterprise cost and the high public inflation expectations. Based on the stagflation governance experience and theory in the domestic and foreign relevant researches, China should adjust family planning policy, improve labor income share, increase the investment in education, health care and social security, implement structural tax cut, perfect science and technology input system, complete legal system for the property rights, household register, social security and administration, clarify money-value stability objective of monetary policy and rationally guide inflation expectation