Infant milk market investigated over high prices

The competition regulator is launching an investigation into infant formula market after finding prices are still at "historically high levels".

The Competition and Markets Authority (CMA) said it was concerned that suppliers didn't have the right incentives to bring prices down.

An initial report in November found the price of formula had risen by 25% over two years.

Prices have fallen slightly since then but the CMA said they remain elevated.

The formal investigation means that the regulator can use its legal powers to compel companies to hand over information. Previously, it had to rely on firm providing information voluntarily.

Sarah Cardell, chief executive of the CMA, said the regulator was concerned that parents were not being given the information they needed to make informed choices over which milk to buy and that the market wasn't functioning in way to prompt suppliers to offer lower prices.

"We are determined to ensure this market is working well for the many new parents who depend on infant formula," she said.

The investigation could result in recommendations to government to change the way formula is marketed or the information provided to parents.