Abstract: Based on the Quah and Vahey two variable SVAR model, refined demand shock, construct three variable SVAR model food prices, inflation and output, applying the three term limit conditions based on the theory of macro economy, China measure of core inflation and the volatility, trend tracking ability, correlation and prediction ability of the four dimensions of the evaluation of core inflation the effect of. The research shows that the SVAR method is a good way to measure China's core inflation, and has some reference value to the monetary authorities decision-making.

Key words: core inflation, SVAR model, measurement, evaluation