Some type of fungus?

My 16 month old has allergies, not to bad. The pollen where we live has been ridiculous! We are outside a lot though. It has caused my daughters skin to be dry. I started putting Shea butter & we stopped going outside as much till the pollen gets better.

I noticed she had what I thought was a bug bite last week. On her upper arm.

But it’s gotten a little worse and has little raised bumps within the bump. I have been putting Chamomile infused oil on it for two days, it’s looking a bit better. If it’s not completely gone by Thursday I’m taking her to her pediatrician. But do any of you have any idea as to what this might be?!