The era of imported disinflation may have come to an end for the U.S., the Wall Street Journal reports.

U.S. import prices swelled for a fifth-straight month in July on higher energy prices and another record increase in the prices of products from China, suggesting the U.S. can no longer count on cheap overseas goods to offset domestic price pressures.

The data should keep Federal Reserve policymakers on edge about the risk that high oil and commodity prices, a weak dollar and robust global economic growth will boost inflation in the U.S., even though heightened concerns about global credit markets seem to be outweighing Wall Street’s worries about price pressures.

Import prices jumped 1.5% in July after climbing 0.9% in June, which was revised down from 1%, the Labor Department said Friday. The latest figures topped Wall Street expectations for a 1% increase.

In the 12 months through July, import prices increased 2.8%, up sharply from June’s 2% year-on-year rate. Petroleum import prices soared 7% last month compared to June, and were up 4.1% on the year. This index had risen 28.5% in the period of July 2005 to July 2006.

Excluding petroleum, import prices rose a more modest 0.2% in July versus June and were up 2.8% on the year. Excluding all fuels, import prices rose 0.3%, the fifth-straight monthly rise.

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