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Apart from upward pressure on the prices of land, labor, agricultural products and services, China is facing imported inflationary pressure resulting from quantitative easing policies in major developed countries, he noted.
"The government should be more open and precise when making public policies," said Zhou Xiaozheng, a sociology professor at Renmin University of China. "It should hold more public hearings and solicit advice from experts and the general public."
In November 2011, a school bus accident occurred when 21 pupils were killed after their nine-seat minivan, with 62 preschool students, crashed in northwest China's Gansu Province.
Song also said that some of the industries that on highly dependent on cheap labor are moving from China's coastal areas to places like Southeast Asia as the cost of labor and other factors rise.
The move came as China's coal sector is seeing softening growth and plunging prices due to overcapacity and sluggish demand amid the economic downshift.
