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This sounds like perioral dermatitis. "Perioral dermatitis is a common skin problem that mostly affects young women. Occasionally men or children are affected. Perioral refers to the area around the mouth, and dermatitis indicates redness of the skin. In addition to redness, there are usually small red bumps or pus bumps, and mild peeling. Sometimes the bumps are the most obvious feature, and the disease can look a lot like acne. The areas most affected are within the borders of the lines from the nose, to the sides of the lips, and the chin. There is frequent sparing of a small band of skin that borders the lips. Occasionally, the areas around the nose, eyes, and cheeks can be affected. Sometimes there is mild itching or burning. "
Source:http://www.aad.org/public/publications/pamphlets/common_perioral.html
Antibiotic creams may be applied on the area. Avoid using other medicated creams or lotions on the face as these may only further irritate the skin. If the symptoms persist,then you may need oral antibiotics for this.