I have lived in Spain for the last 7 years, and i can agree, that prices of food and other household groceries has risen massively in that time.
The price of fuel is the obvious reason for this. Lots of people who live in the UK, including some of my friends, think that living here is really cheap, but its not now.
The only things i still see that are cheap are Beer and Cigarettes, i dont mind the beer being cheap, but i dont smoke, so cigarette prices dont mean anything to me.
Here's to hoping that fuel prices level out and hopefully drop soon.

Lee.