"Even bags that do not have a chip in them, use chips in the process of production," she said. "This chip inflation may be passed on to consumers and result in a faster CPI growth rate if the chip shortage persists."
The pound was up 0.8% on the day at $1.40970, having crossed the key $1.40 level for the first time since February during the Asian session, and risen above $1.41 during the European morning session.
Sales volumes leapt by 5.4% in March from February, the Office for National Statistics said. Economists polled by Reuters had expected an increase of 1.5%.
On top of retail sales, a survey showed a deluge of orders swept through British businesses in April as the country lifted some of its restrictions, pointing to a rapid rebound for the pandemic-hit economy.