US Parents Face Record Surge in Baby Food and Formula Costs

Baby food and formula prices surged by the most on record last month, exacerbating the financial burden facing families with young children.

Baby food and formula prices surged by the most on record last month, exacerbating the financial burden facing families with young children. 

US prices for baby food and formula rose 5.1% in October, according to Bureau of Labor Statistics data out Tuesday. The costs of a variety of essentials, including other groceries, car insurance, day care, rent and electricity also increased in the month. 

A combination of factors are likely contributing to the increase in formula prices, including higher costs for ingredients, transportation inflation and a smaller birth cohort, said Darren Seifer, vice president of thought leadership for home, family and baby at NielsenIQ. The BLS declined to elaborate on what may have driven the increase in their data. 

Companies that make baby formula have looked for ways to offload that part of their business as the industry struggles with contamination and cost issues. 

Abbott Laboratories, which sells Similac brand formula, said in October it will spin off its nutrition business. Unsanitary conditions at an Abbott factory in Michigan led to a nationwide shortage in 2022. And Perrigo Co. said it plans to sell its baby formula business to a company formed by executives of ByHeart, the infant-formula maker whose product sickened babies with botulism last year.

Baby food has also faced scrutiny for containing high levels of heavy metals. But Consumer Reports, which tests various products and services, said recent testing showed companies have made strides in reducing those levels.

“Baby formula is one of those categories where families aren’t going to pull back on just because prices went up,” Seifer said. “They’re going to make decisions around which brands to buy. Can they maybe buy a smaller size and still get by?”

With assistance from Simone Foxman.

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