The Greeks who live and work in the capital have the biggest gripe: prices have shot up over the past few years. With a relatively low per-capita income, Greeks are finding it harder to survive in Athens.
For tourists, the biggest impact is in the price of beer and coffee, both of which have risen sharply over the last two years. While the "Guardian" gives an average price of €3.40, the vast majority of my recent Cappucinos in Greece were half that.
But the "Guardian" also goes on to quote the Greek newspaper "To Bima tis Kyriakis", indicating that beach access prices now equal nightclub entry fees in other major European cities. This is misleading for the traveler to Greece: the vast majority of Greek beaches are free. The exceptions are the highly-organized beaches such as Vougliameni outside of Athens. Most travelers are not interested in these crowded, supervised family beaches backed by cement parking lots and will be seeking out more picturesque spots for their Greek sunbathing. On the sand, you may have the choice of paying a few Euro for an umbrella or sunbed, but that's up to you.
While Athens should be jammed for the Olympics, most travel-related businesses are actually seeing a substantial drop in bookings this summer. This can mean one of two things, depending on the individual company or business. They may try to get every spare coin out of fewer visitors, or they may cut prices dramatically to attract business. Shop around. This is always true of travel in Greece, but more so this year than ever. Just don't expect great deals during and immediately before and after the Olympic dates. However, even then, there may be unexpected bargains - they just won't be easy to find.
Yes, prices are up in Greece, and will go higher for this Olympic year, but for the average traveler, a Greek vacation filled with sun, fun, and a vibrant cultural life is still a very good deal.
