China's producer price index rose 10.7 percent in September from a year earlier, marking the fastest pace of increase since data was first released in October 1996.
The National Bureau of Statistics on Thursday released the figure that measures price fluctuations of goods at the factory gate.
Soaring raw material prices, including crude oil, coal and metals, are major reasons for the increase.
The 10.7 percent rise in September is 1.2 percentage points higher than the increase marked in August.
There is concern that the rise in PPI will pile up pressure on businesses and intensify China's economic slowdown.