Britain’s antitrust regulator has said it would scrutinise the country’s infant formula market after prices soared 25% in the past two years.
The rising cost of baby milk formula has been a key point of discussion in the inflation-driven cost of living crisis.
Some media reports have said that struggling parents had watered down the formula in order to feed their children.
Nestlé and Danone are among the companies that supply baby formula in Britain through brands such as SMA Nutrition and Cow & Gate.
The Competition and Markets Authority (CMA) said it would launch a market study.
They can then force suppliers to provide information on pricing and other issues instead of relying on voluntary submissions.
The regulator said it will aim to publish its final report in September 2024. It added that it would consider whether there are problems in the baby formula market.
The regulator would also consider what actions should be taken to address these problems.
The chief executive of the CMA Sarah Cardell said the cost of infant milk remained at “historically high levels” even after prices fell in the past three months.
Cardell said in a statement, “We’re concerned that parents don’t always have the right information to make informed choices and that suppliers may not have strong incentives to offer infant formula at competitive prices.”
Read More: UK Grocery Price Inflation Falls At Slower Rate Than Expected – Kantar
