Inflation inertia is endogenously produced in inflation dynamic evolution system, can restrict the influence of exogenous monetary policy shock on the inflation and further increases the cost to realize monetary policy objective. The pure forward-looking Phillips Curve does not include intrinsic inflation inertia and can not be used to describe and explain inflation inertia. This paper is based on a backward-looking Phillips curve model including sticky inflation assumptions to describe the dynamic feature of inflation inertia in China during 1996-2013. The results show that the inflation in China has strong inertia and that the impact of interest rates and money supply amount on inflation in China is significant. Higher inflation inertia means that the monetary policy to stimulate the economy will lead to higher disinflation costs, and Central Bank should give higher weight to inflation goal and take market-oriented monetary policy tool as the main method to inhibit the inflation.