Kodak is warning of massive price hikes worldwide.

In a statement published on its website, Eastman Kodak explains: "The increases are a result of the soaring prices of key raw materials, especially silver and aluminium, as well as the rising cost of petroleum".

The increases, which could be as much as 20% dependent on geography, will take effect from 1 July.

In a follow-up interview in The Guardian, Kodak chief executive Antonio Perez said that the price of aluminium and silver has risen by "75%" in the past year and the cost of oil "doubled".

Perez also said in the article that these raw materials price rises would affect the whole photography industry and so he expected other companies to announce price hikes too.

But Kodak UK has hit out at the story saying that The Guardian is wrong to suggest that consumer photo goods including cameras and printers wll be affected.

Patrick Hamilton, Kodak's European PR director for consumer digital products told weekly mag Amateur Photographer: "The Guardian got it slightly wrong", stating that the price rises "will only affect photographic paper and chemistry".