No, it isn't. That is a myth. Please see the following (recognizing that baby oil is, essentially, mineral oil): http://thebeautybrains.com/2007/11/15/do-you-believe-any-of-these-skin-care-myths/ http://personalcaretruth.com/2011/02/mineral-oil/
Two things to know about mineral oil: 1) cosmetic grade is different from what is used in industrial settings, 2) don't breathe the actual liquid into your lungs deliberately (as in aspirate the stuff), or inject it into your abdominal cavity.
The International Agency for Cancer concluded the following about "white oils and petrolatums" (which include the type of mineral oil and petroleum jelly used in cosmetics): "There is no evidence for the carcinogenicity to experimental animals of white oils (class 5) when administered by routes other than intraperitoneal injection..." http://monographs.iarc.fr/ENG/Monographs/vol33/volume33.pdf
Are you still worried? Hope not. The only danger with it is when people take it internally (I think it's used to treat constipation, btw, if I'm not mistaken--mineral oil I mean, not the scented kind) if they get it down the wrong "tube" (in the trachea) it can cause a type of pneumonia. But you don't have to worry about breathing the scent of it, just literally breathing in the liquid (as you would if you aspirated it).
Yeah, here you go. A fact sheet from the American Cancer Society . http://www.cancer.org/Treatment/TreatmentsandSideEffects/GuidetoCancerDrugs/Mineral-Oil Apparently, it is used to treat constipation, including in cancer patients. I think they'd have cancer listed as a side effect for it, if that were an issue--it is the Cancer Society, after all...
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