Inflation is an important phenomenon in the national economy, and central banks have made it one of their tasks to control inflation. The core research object of this paper is the causes of inflation in China since it entered the 21st century, and the Entropy-weighting Method is used to construct a comprehensive indicator system, including 5 different factors contributing to inflation, then analyze it using a VAR model. The following conclusions are drawn: demand-pull inflation in China is more influential than cost-push inflation, and the expectation factor is an important cause of inflation.

Luo Ruichi. Measurement of Inflation in China: An Empirical Study of a VAR Model Based on the EWM Indicator System. Academic Journal of Business & Management (2023) Vol. 5, Issue 8: 1-9. https://doi.org/10.25236/AJBM.2023.050801.

[1] Feng Ke. (2007). Using moderate macro policies to cope with moderate inflation. [in Chinese] New Economic Journal (07), 40-42.

[2] Qiu Yilin& S. Liang. (2022). Changes in the manifestation of inflation, main causes and suggestions [in Chinese]. Southwest Finance (11), 3-16. 

[3] Zhang Lin. (2020). Financial Structure, Asset Prices and Inflation in China. [in Chinese] Journal of Central University of Finance and Economics (08), 24-32. doi: 10.19681/j.cnki.jcufe. 2020.08.003.

[4] Luo Xiangxi. (2018). On Inflation and Deflation Based on Financial Perspective. [in Chinese] Science and Technology Perspectives (02), 193-194. doi: 10.19694/j.cnki.issn2095-2457.2018.02.104.

[5] Zhou Xiaochuan. (1988). Inflation in China as a demand-pull inflation. [in Chinese] Comparative Economic and Social Systems (06), 30-33.

[6] Duan Ruijun. (2008). An empirical study on the impact of current financial factors on inflation risk in China. [in Chinese] Finance and Trade Economics (08), 38-43+128. doi: 10.19795/j.cnki.cn11-1166/ f. 2008.08.007. 

[7] Chen Xuebin. (1996). An empirical analysis of the Phillips curve relationship and inflation expectations in China's economic performance. [in Chinese] Research in Finance and Economics (08), 3-8+64. doi: 10.16538/j.cnki.jfe. 1996.08.001.

[8] Chen Yanbin. (2008). A study of the New Keynesian Phillips curve in China. [in Chinese] Economic Studies (12), 50-64.

[9] Feng Beilin & Wang, Guimin. (2006). Monetary policy and financial situation index FCI: An empirical analysis based on VAR. [in Chinese] Research in Quantitative Economics and Technology Economics (11), 142-150.

[10] Fu Dan, Mei Xue. & Zhang H. (2009). An empirical analysis of the correlation between gold prices and inflation. [in Chinese] Gold (01), 4-7.

[11] Xiao Zhengyan, Chen Zhang, Chen Xiaoliang & Chen Yanbin. 2011 A new species of the genus Aphisia (Hymenoptera, Braconidae) from China. (2022). Inflationary Influence Factor Identification - A Retest Based on Machine Learning Methods. [in Chinese] Statistical Research (06), 132-147. doi: 10.19343/j.cnki.11-1302/c. 2022.06.009.

[12] Deng Xue., Li Jiaming, Zeng Haojian, Chen Junyang & Zhao Junfeng. (2012). Analysis of hierarchical analysis weight calculation method and its application research. [in Chinese] Mathematical Practice and Understanding (07), 93-100.

[13] Yi Ruolan. (2022). Research on credit risk assessment of listed companies in China - based on improved CRITIC entropy portfolio assignment-TOPSIS model. [in Chinese] Investment and Entrepreneurship (21), 119-121.

[14] Lu Anxuan & Fu Chunyan. 2012. (2021). Application of AHP-Entropy-TOPSIS in real estate project investment decision... (eds.) [in Chinese] Proceedings of the Labor Security Research Conference (IX) (pp. 140-143).

[15] Qiao H.S. & Wang J.H. (2006). An Empirical Test of the Relationship between Investment and Inflation. [in Chinese] Statistics and Decision Making (20), 89-91.

[16] Zhang Hongbo & Zhu Andong. (2022). Credit money creation, investment development patterns, and M2/GDP. [in Chinese] Shanghai Economic Research (11), 98-115. doi: 10.19626/j.cnki.cn31-1163/ f. 2022.11.007.