Based on the relevant theories of Consumer Price Index (CPI) and the method of literature study and empirical analysis, this paper expounds the meaning, fluctuation characteristics, influencing factors and functions of Consumer Price Index (CPI). The ARMA model is used to predict and analyze the time series data of Jincheng from 1987 to 2018, and then the relevant policy suggestions are put forward. The research holds that the price of agricultural products and oil price are the main factors affecting the Consumer Price Index (CPI) of Shanxi cities, and the government departments should strengthen macro-control, implement measures such as safeguarding farmers ' basic income, vigorously promote energy price reform, make the Jincheng economy run smoothly, and improve the overall living standard of Jincheng city residents.