June import prices rose 2.6%, the U.S. Labor Department announced Friday, driven higher by rising petroleum prices and a falling dollar.

Excluding the often-volatile petroleum component, June import prices increased 0.8%, the Labor Department said.

Economists surveyed by Bloomberg News had expected June import prices to rise 1.8%. Import prices also rose a revised 2.6% in May; they increased 2.8% in April, and 3.1% in March.

In the last 12 months import prices are up 20.5% -- the biggest year-over-year increase on record, the Labor Department said. It's also a level that historically indicates that U.S. consumer price inflation will trend higher, due to price pressure from foreign goods/services.

Prices for imported petroleum were a major factor in the aforementioned price rise -- up 78.6% in one year.

Meanwhile, U.S. exports prices increased 1% in June, after rising 0.4% in May. Farm export prices increased 2.2%, while non-farm exports increased 0.9%.

Economist David H. Wang said the June import/export price report was yet another negative one for the U.S economy. "The report continues to feature the impact of record-high oil prices, which are boosting inflation just about across the price spectrum," Wang said. "Import prices are making the Fed's [U.S. Federal Reserve's] job of lowering inflation harder. The U.S. needs a substantial, sustained decline in oil prices to get control of inflation."

Import prices increased 2.3% in May -- higher than expected -- driven by near record-high prices for imported oil and natural gas, the U.S. Labor Department announced Thursday. Excluding energy, import prices increased a scant 0.5% in May.

Economists surveyed by Bloomberg News had expected import prices to rise 2.0% in May. Import prices increased 2.4% in April and 3.0% in March.

In May, imported petroleum increased 7.8%, and natural gas increased 5.4%. Further, petroleum prices rose 68.8% for the year ended May 2008 -- the largest 12-month advance since the index increased 82.5% between February 2002 and February 2003.

Meanwhile, export prices increased 0.3% in May 2008, its smallest rise since September 2007. Further, export prices rose 8% over the past year.

April U.S. import prices rose 1.8%, the U.S. Labor Department announced Tuesday, as petroleum and non-petroleum imports contributed to the rise for the second straight month.

Excluding petroleum/oil, prices increased 1.1%. Economists surveyed by Bloomberg News had expected prices to rise 1.7%. Meanwhile, March 2008 import prices rose a revised 2.9%.

On a year-over-year basis, import prices are up 15.6% -- a level that historically indicates that U.S. consumer price inflation will trend higher due to prices pressure from foreign goods/services.

Economist David H. Wang said the report contained few surprises. "The report continues to display the consequence of record-high oil prices, which are boosting inflation just about across the price spectrum," Wang said.

U.S. Federal Reserve officials, economists, executives, analysts and others closely monitor changes in import and export prices because they provide reads on inflation in the U.S. and internationally. Furthermore, the data frequently has a direct impact on the bond and the currency markets.