Scramble continues for infant formula as supplies dry up
The scramble for baby formula continues across the U.S. as supply disruptions and a massive safety recall have swept many leading brands off store shelves.
Months of spot shortages at pharmacies and supermarkets have been exacerbated by the recall at Abbott, which was forced to shutter its largest U.S. formula manufacturing plant in February due to contamination concerns.
Early last week, White House press secretary Jen Psaki said the Food and Drug Administration was “working around the clock to address any possible shortages.”
The FDA on Tuesday said it was working with U.S. manufacturers to increase output while streamlining paperwork to allow more imports.
For now, pediatricians and health workers are urging parents who can't find formula to contact food banks or doctor's offices. They warn against watering down formula to stretch supplies or using online DIY recipes.
“For babies who are not being breastfed, this is the only thing they eat,” said Dr. Steven Abrams, of the University of Texas, Austin. “So it has to have all of their nutrition and, furthermore, it needs to be properly prepared so that it's safe for the smallest infants.”
High inflation persists but eases a bit in April
Inflation eased slightly in April after months of relentless increases but remained near a four-decade high, making it hard for millions of American households to keep up with surging prices.
Consumer prices jumped 8.3% last month from a year ago, the government said Wednesday. That was below the 8.5% year-over-year surge in March, which was the highest since 1981. On a monthly basis, prices rose 0.3% from March to April, the smallest rise in eight months.
Still, Wednesday's report contained some cautionary signs that inflation may be becoming more entrenched. Excluding the volatile food and energy categories, so-called core prices jumped twice as much from March to April as they did the previous month. The increases were fueled by spiking prices for airline tickets, hotel rooms and new cars. Apartment rental costs also kept rising.
Price jumps “make clear that there is still a long way to go before inflation returns to more acceptable levels,” said Eric Winograd, U.S. economist at asset
manager AB. Layoffs ahead for Carvana after losses, acquisition
Online automotive retailer Carvana Co. says it's letting go about 2,500 workers, roughly 12% of its workforce, as it tries to bring staffing and expenses in line with sales.
The Phoenix company said in a regulatory filing Tuesday that its executive team is giving up salaries for the rest of the year to help fund severance pay for the workers.
Carvana, which sells online and delivers used vehicles to buyers, says the laid-off workers will come from operational groups. The company says it will be “transitioning operations” away from its auto reconditioning center in Euclid, Ohio, near Cleveland, as well as from some logistics hubs.
The filing said the moves are difficult, but will “facilitate Carvana returning to efficient growth on its mission to change the way people buy and sell cars.”
The layoffs come just a few weeks after Carvana posted a $506 million loss in the first quarter, six times larger than the same period a year ago. The company also recently acquired Adesa U.S.' used vehicle auction business for $2.2 billion.