The evaluation model based on pricipal component analysis avoids the subjectivity of evaluation to some extent,overcomes the correlation between indicators and has smaller information loss rate.This paper uses principal compponent analysis to select the leading factors affecting family consumption expenditure of rural inhabitants of each province and municipality of China,then classifies the provinces and municipalities which have similar consumption expenditure level through system clustering analysis to construct hierarchical clustering diagram to describe consumption expenditure level of rural residents of all provinces and municipalities of China and obtains relatively reasonable result in order to provide corresponding strategies for current rural inhabitants consumption expenditure in China.