Does Rising Commodity Prices Pose an Inflation Risk

In the context of rising commodity prices, this paper mainly analyzes transmission between domestic upstream and downstream prices impact on aims to study whether will cause inflation risks. paper, a Vector Autoregressive Model (VAR) is constructed by using time series data RMPI, PPI, CGPI, CPI in China, it founded through impulse response analysis that upper midstream China have significant dynamic effect while reverse mechanism against price price.Based this, believes there an indirect rise risk inflation, delay, necessary pay close attention structural changes consumer prices. Finally, relevant policy recommendations were proposed.