Abstract: In this paper, a study was conducted to the consumption structure of the urban residents during 1994—2002 in Chongqing by applying the extended linear expenditure system model （ELES）, the trend analysis method, and the least square algorithm, and then a quantitative analysis was carried out on the consumption trend, saving trend, price elasticity etc.. Further, the Engel coefficient was measured and the consumption trend of urban residents was forecasted. Finally, some advices on improving a policy were proposed.