A study, drawn from the European Commission's 2008 Economic Review of EU Neighbour Countries, analysing price developments and comparing national macroeconomic policies in response to the consumer prices that started to soar in 2007 across the European Neighbourhood Policy countries, the other Barcelona countries, Russia, the Gulf Cooperation Council countries and the euro area. The analyses focus primarily on ag-flation, but also examine capital inflows in view of income levels in the EU's neighbour countries. The analyses show that food inflation was pushing up total inflation, even despite the provision of food subsidies by national authorities.