My DD is 9 months and still has the mild rash - it was really bad when she was little. We tried everything but the best thing we found was to keep it clean and dry (when possible) and we put some of her sigmacort cream (for excsma) on it just to sooth it - that really helps with the irritation. The doc prescribed it for her and he said it was mild enough to be safe.
My DS suffers with this occasionally as well but also has eczema under there as well. Baby powder would probably be making it worse as it has perfumes etc in it. When it is really bad on DS I always keep it as clean as possible, dry as possible and I always put corn flour under there. It is the best thing ever, dries it out and has no perfumes etc. I then put a barrier cream like paw paw, dermeze or sudocream to stop the acid from the dribble getting on to it. Hope that helps.
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