During continuous very high gravity (VHG) fermentation, yeast cells exhibit sustained oscillation of residual glucose, ethanol, and biomass, which remains a fundamental and unanswered question associated with product inhibition. In this study, the oscillating process was characterized through transcriptome and metabolome analysis in one sinusoid cycle. By integrating analysis of 26 metabolites and 90 genes related to carbon metabolism, the results confirmed that fermentation oscillation could be attributed to intercellular metabolic oscillation with phase difference of sinusoidal waveform. Furthermore, expression changes of stress response genes indicated that dynamic ethanol inhibition was a primary factor responsible for the oscillation of metabolism. This study not only contributes to elucidation of the mechanism of oscillating fermentation through strong product inhibition, but also provides new understanding of other fermentation processes in an unsteady state.