iIf it was lice wouldnt my wife be itchy by now .
Hello,
It can be due to body lice or even fungal infection. The third possibility is of any allergic reaction. To confirm any fungal infection, you can also get a KOH examination of the skin scrapings done.
According to CDC(centre of disease control), Intense itching (“pruritus”) and rash caused by an allergic reaction to the louse bites are common symptoms of body lice infestation. Wash the Clothing, bedding, and towels in hot water and dry them in sun after machine drying them. Topical permethrin or Lindane cream may be needed which are available by prescription only.
It is very difficult to precisely confirm a diagnosis without examination and investigations and the answer is based on the medical information provided. For exact diagnosis, you are requested to consult your dermatologist. I sincerely hope that helps. Take care and please do keep me posted on how you are doing.