Abstract: This paper applies Semiparametric model to identify the China's nonlinear Philips curve in economic transformation,which represents in the form of cube-polynomial function,with good fitness and marked statistical test. Furthermore,this paper interprets the application of nonlinear Philips curve and uses it to predict the trend of inflation during 2007-2010.

Key words: inflation, philips curve, no nlinear, semiparametric model