Abstract: In recent years, the increasingly rising price of mutton in Xinjiang results in the rising of the consumer price index. Based on survey data and related statistics in early 2013 to Kashgar and Turpan area 120 typical households, analyses of Xinjiang sheep industry development and mutton market price fluctuations, the article considers that there are many factors leading to the continually soaring mutton prices, which involves not only the reasons coming from natural resources but also from production, circulation and consumption, etc. In order to stabilize mutton prices rising too fast, this paper proposes intensifying the degrees of policies supporting, promoting intensive feeding, reinforcing the extension of scientific and technological knowledge, broadening the funding channels, strengthening regulation of the local markets and perfecting the reserve system.