July 11 (Bloomberg) -- Prices of goods imported into the U.S. rose more than forecast in June as record energy costs and a decline in the dollar made purchases of foreign products more expensive.

The 2.6 percent increase in the import price index last month matched the gain in May, the Labor Department said today in Washington. The index jumped 20.5 percent from a year ago, the biggest year-over-year increase on record. Prices excluding petroleum rose 0.9 percent last month.

Higher costs for oil, which topped $145 a barrel this month, will keep Federal Reserve policy makers on watch for a broader acceleration in inflation. Costlier imports add to concern that American companies will follow their foreign competitors in raising prices.

``The risk is that the higher import costs could be passed on to consumers,'' Rudy Narvas, senior economist at 4Cast Inc. in New York, said before the report. ``This could anchor inflation expectations higher and get the Fed really worried.''

Food prices rose 1.9 percent in June and were up 15.8 percent from a year earlier, the biggest year-over-year jump since this measure began in 1977.

Import prices were projected to rise 2 percent, according to the median estimate of 52 economists surveyed by Bloomberg News, after an initially reported 2.3 percent gain in May. Forecasts ranged from gains of 0.6 percent to 3 percent.

Main Index

The year-over-year increase for June in the main index was the biggest since it was first published in 1982, the department's report showed. In May, the year-over-year increase was 18.8 percent.

``This does signal higher inflation pressures ahead,'' said Dana Saporta, an economist at Dresdner Kleinwort in New York, who had forecast a 2.2 percent gain in import prices. Still, ``overriding economic concerns will keep the Fed on hold through the year.''

Excluding all fuels, import expenses rose 6.6 percent in June versus a year earlier.

The import-price index is the first of three monthly price gauges from the Labor Department. Government reports are due on July 15 for wholesale prices and on the following day for the consumer price index.

The price of imported petroleum and petroleum products gained 7.4 percent after an 8.9 percent increase in May. Prices were 78.6 percent higher than a year earlier.

Doubled in Year

Crude oil futures have doubled in the past year. Crude oil for August delivery today rose as much as $4.33, or 3.1 percent, to an all-time high of $145.98 a barrel on the New York Mercantile Exchange and was trading at $145.17 at 12:25 p.m. in London.

Imports are also becoming costlier because the dollar weakened 7.7 percent in the 12 months through June against a trade-weighted basket of currencies of major U.S. trading partners.

Imported capital goods were down 0.1 percent in June, the first decline since January.

Prices of imported automobiles, parts and engines last month rose 0.1 percent, and costs for imported consumer goods excluding autos increased 0.2 percent for a second straight month.

Overseas tiremakers are trying to counter soaring costs. Michelin & Cie., the world's second-largest tiremaker, said last month that it will raise U.S. prices as much as 12 percent on replacement tires for cars and light trucks.

Staff Cuts

Automakers, with less ability to raise prices, are cutting staff and production. Ford Motor Co., the world's third-biggest automaker, began discharging North American salaried employees in June amid widening losses and plunging sales.

Foreign automakers also are hurting from a slowdown in U.S. sales. Toyota Motor Corp., the world's second-largest carmaker, may find it difficult to meet the company's forecast of selling 2.64 million vehicles this year in the U.S., its biggest market, officials said.

``We are struggling in the U.S. at the moment,'' Executive Vice President Tokuichi Uranishi said at a shareholders meeting in Toyota City, Japan on June 24. ``Higher fuel prices and the subprime loan crisis have cut demand.''

Prices of goods from China were up 0.6 percent, those from Latin America rose 2.9 percent and imports from the European Union cost 0.6 percent more in June.

U.S. exports prices increased 1 percent after rising 0.4 percent the prior month. Prices of farm exports increased 2.2 percent, while those of non-farm exports were up 0.9 percent.

To contact the reporter on this story: Shobhana Chandra in Washington schandra1@bloomberg.net

Last Updated: July 11, 2008 09:02 EDT