China's CPI kept rising in 2007, probably to 4.5%to 4.6. In the early period of the year, the direct cause for this rise was the steep climb in food prices; the mounting of the non-food prices kept at low levels. Therefore, the increase in CPI was a structural inflation. In this paper, we have used an econometrics model to make an analysis and showed that the rise in pork price obviously spurred the rise of CPI: 10% increase in pork price would always push the rise of CPI to 0.5%. The fluctuation of prices of different kinds of agricultural produce has the characteristic of conductivity and synchronization, something like the domino effect. The climb in produce price added$217 to the income of the rural residents per capita, increasing at the same time the living cost of rural residents. In conclusion, we should say that reasonable is the rise and fall of China's produce prices at present.