The PPI plunged 3.1 percent on-year in April - a 1.3 percent monthly drop compared with March - according to China's National Bureau of Statistics.
Julian Evans-Pritchard of Capital Economics noted that the slump in PPI was its "steepest monthly drop since the Global Financial Crisis" of 2007-08.
The pandemic has hammered the world economy, which is facing its most severe downturn since the Great Depression, with businesses shuttered and huge spikes in unemployment.
The April drop was more severe than the 2.5 percent fall forecast by analysts, highlighting the continued stress on industries as they resume production after the economy was almost completely shut down at the height of the outbreak in China.
The consumer price index (CPI), on the other hand, grew 3.3 percent in April, but less than the 3.7 percent forecast in a Bloomberg poll of analysts.
This was the slowest pace since last September when inflation rose three percent, and NBS senior statistician Dong Lijuan attributed the easing pace in part to an increased supply of fresh vegetables and fluctuations in global oil prices.