Currys has warned that prices for laptops, phones and other electronic devices could rise as booming demand for Artificial Intelligence technology drives up the cost of memory chips. Chief executive Alex Baldock said the surge in demand is absorbing global chip supplies, leaving less available for consumer products and increasing the risk of price inflation.

The retailer said it has secured enough stock to last through the back to school period, but acknowledged that higher component costs may eventually be passed on to shoppers. Baldock added that while Currys is well positioned with suppliers, ongoing pressure in semiconductor markets could still affect pricing.

He also cautioned that conflict in the Middle East could weaken consumer confidence by pushing up energy prices and inflation. Higher household bills and reduced purchasing power pose what he described as the biggest risk to spending, potentially slowing demand for electrical goods despite recent strong sales.