UK parents struggling with the rising cost of baby formula may be facing another challenge: potentially misleading pricing claims by manufacturers. The Competition and Markets Authority (CMA) has launched an investigation into whether companies are exaggerating price increases to justify higher costs.
Are Formula Prices Artificially Inflated?
The consumer watchdog is examining whether manufacturers have been overstating production cost rises while quietly reducing package sizes – a practice known as 'shrinkflation'. This comes as many families report spending over £15 per week on formula, with prices having surged by 25% in just two years.
What the Investigation Will Cover
The CMA probe will focus on:
- Comparisons between stated price increases and actual production costs
- Changes in product sizes and formulations
- Potential anti-competitive practices in the market
- The impact on low-income families
Industry Response
Major formula manufacturers maintain their pricing reflects genuine increases in ingredients, energy and transportation costs. However, consumer groups argue some companies may be using inflation as cover for profit-boosting measures.
The outcome could lead to enforcement action if evidence of misleading practices is found, potentially including fines or mandatory price adjustments.
