Abstract: In this paper, a discrete bilinear optimal control model for price reforms is developed. It is proved that, in order to keep the people's living level, the control of the wage rate can be achieved by price state feedback controllor in the model. The necessary and sufficient conditions for the terminal manifold reachable and stable are given in the paper, which provide the theoretical base for the design of the parameters in the living level feedback controllor, and the theoretical explanation for the inflation caused by the overdivide of national income.