Electronics firm Philips is to increase the prices of its goods because of the weakening economic climate, reports ANP news service on Wednesday.

The company has been hit by the higher costs of raw materials and energy.
Philips made the announcement before a electronics conference in London. The firm confirmed that it is on target to meet its financial goals for 2010. Philips expects annual growth of 6% and a rise in profit margins of around 10% in the coming two years.