The perception and expectation of inflation are judgments about present and future inflation.The econometrician can easily observe the objective magnitudes of inflation whereas individuals can only react on the basis of their subjective magnitudes and suffer more from social amplification，availability heuristics and so on.So，it is very important to investigate the factors that influence their perception and expectation of inflation.In this study，using the method of hierarchical linear modeling，we analyzed the data in the surveys of residents’ saving behavior from the People’s Bank of China during 1995-1999，and found that the means of the perception and expectation of inflation were positively and significantly influenced by HP Trend of CPI （consumer price index），while not significantly influenced by HP Cycle of CPI.Income predicted the expectation of inflation negatively，and HP Trend of CPI moderated the relationship between income and the expectation of inflation.There was no significant difference of the perception of inflation between urban dweller and rural population，while urban dweller’s expectation of inflation was higher than rural population’s，and HP Trend of CPI moderated the relationship between place of residence and the expectation of inflation.There were no differences of the perception of inflation among scholars，farmers，artisans and merchants.But formers’ expectation of inflation ware higher than others，and HP Trend of CPI moderated the relationship between vocation and the expectation of inflation.We discussed the mental mechanisms behind these findings and their meanings for managing the expectation of inflation in detail.