Interesting number for views and stats on this thread.
I live for part of the year in Soller, Mallorca and can say that prices on The Island are higher than the mainland - we moved from Barca last year and found prices higher.
We have a local house keeper and she manages to buy very cheaply from the local farmers and markets. So that might be a route for folk to try who are looking for local fresh produce. I know this doesn't help with favorite UK products but do you really need brand 'X' (usually from a US comapny) when brand 'Y' probably local or Europeandoes the job.
As for C'an Picafort -- well it's full of Germans for the Summer and empty most other times, just as Alcudia is full of Brits in the same months. Try the North and centre of The Island for peace and quiet and a different pace of life.
I'm guessing that overall, for our lifestyle, Mallorca is cheaper than the UK - cheaper help, cheaper boat mouring and cheaper local foods ( seems to be more expensive to buy local in UK but we do have a house in an expensive area).
Overall I'm guessing Spain is cheaper - but don't underestimate the value of living The Dream.
Just packing to move to UK for the Summer months (too hot in Mallorca) and too be able to watch the Cricket live rather than on TV.
David