Abstract: This paper attempts to build a analytical framework based on the sectoral bottleneck restrain model of the real economy and the asset market equilibrium model from the monetary perspective to conduct an empirical test by making use of the time varying parameter model of state space. The results show that the agricultural sector has an obvious bottleneck and the product supply elasticity is low. When the demand is increased for a short-term, the characteristics of structural inflation because of the rising of agricultural labor and agricultural products are obvious; at the same time, when there is an excess monetary liquidity, the adequate mobility will push the structural inflation to a higher level, while the domestic currency liquidity and foreign exchange reserves will add fuel to the fire.

Key words: structural inflation; sectoral bottleneck restriction; monetary liquidity