14.7 C

Baby formula prices just soared to an all-time high and manufacturers are blaming it on new regulations that ‘significantly’ raise their costs



US prices of baby food and formula jumped by the most on record to an all-time high last month as suppliers rushed to adjust to new government guidance aimed at avoiding another widespread shortage.

Prices in the category rose by 4.3% in April from the prior month, data from the Bureau of Labor Statistics showed Wednesday. From a year ago, prices are up 8.8%.

Parents across the US had to cope with soaring prices during the pandemic as supply-chain disruptions and contamination concerns led to out-of-stock rates of above 70% and prompted the White House to intervene. Shortages have since eased, but prices remain above pre-pandemic levels.

In an effort to help prevent another crisis, the Food and Drug Administration announced in March an “immediate” strategy to ensure safe and adequate supplies going forward. The agency said it’s working to inspect all infant-formula manufacturers at least annually, increase training for inspectors and improve communication with formula makers, according to a report

The guidelines prompted producers to increase surveillance inspections and conduct other adjustments. Perrigo Co., a major manufacturer of infant formula, said this week it was making investments to modernize its production infrastructure and evaluating further changes, which will “significantly” raise costs.

“These actions will negatively impact supply and significantly raise the cost of producing infant formula,” Chief Executive Officer Murray Kessler said in a call after reporting quarterly earnings Tuesday. “The substantial cost of these new regulatory requirements will be offset with a price increase.”

Neither Perrigo nor Abbott Laboratories, another key producer, responded to requests for comment. The FDA also didn’t immediately respond. 

Overall consumer price growth cooled last month to an annual rate of 4.9%, down from a peak of 9.1% last June. 

Source link

Subscribe to our magazine

━ more like this

The world’s typical billionaire is mostly just like Bill Gates: A 67-year old boomer entrepreneur

If Bill Gates pops up in your mind when you envision wealth, you’re spot on. It turns out that Gates is the prototype...

There’s a new spelling bee champ and he’s a 14-year-old from Florida with an exercise routine to help sharpen his focus

Fifteen months ago, Dev Shah spent a miserable five hours spelling outdoors in chilly, windy, damp conditions at a supersize regional competition in...

Searching Gmail on your phone is (hopefully) about to get way better

When it comes to Gmail, I’m a native app loyalist. Try as I might to explore third-party clients for Android or iPhone —...

Nike’s chief design officer tells new college grads his superpower is ‘wonder’ and dyslexia is a ‘gift to see the world differently’

One summer, 12-year-old John Hoke III was floating on a raft in a swimming pool. An avid runner, he began to wonder how...

The Essential Checklist Of 65 Tough Relationship Questions Every Couple Should Ask

Ever tried navigating a labyrinth blindfolded?  That’s how navigating relationships can feel sometimes, right?  To help you with this journey, we’ve compiled 65 of the...