Hi,
I have been to Cyprus a few times, and can say that on my last time i had noticed the change in prices. Like anywhere, you have to shop around, you won't go wrong for food, as most places, are great. Just be carefull, in the square-clubbing area. They say it's happy hour, (Buy 1 get 1 free), but you end up paying for it. Example £4.00 - £5.00 for a pint. I haven't really, been to the clubs, so can't cost that, but we took £1000 for 2 weeks, as we were S/c, we ate out most nights, and went drinking every night. Just remebered, they hadn't joined the european union then, that might have affected prices.
Hope this helps a bit, no matter what you will love it, it's a lovely place.