Based on VEC model, this paper studies the relationship between selling price index of house and consumer price index from 1998Q1 to 2008Q2. The results show that selling price index of house has significant effect on consumer price index in either the long-term or the short-term. There is relationship between fast rise of house price and CPI rise. So this paper suggests that government should take selling price index of house as the best forward-looking indicator of the inflation, thus making our inflation less probable and less severe.