We didnt stay in Falesia,but we were in the Algarve in late May.Prices of most things were,compared to when the £ was strong,pricey.
Would seriously advise that you dont bother with the local small supermarkets and find your nearest hypermarket.We went to one in Praia Da Rocha and stocked up for the whole week.Buy Portuguese brands and your money will go much further.
Most of the bars seemd to have a happy hour doing a pint for 1 euro and several restaurants were doing a daily special for 8 or 9 euros.Tried that a few times and never had a bad meal.
one thing we found that saved a lot of money was having a bottle of water with a meal instead of beer,wine,coke etc.Can easily save 15-20 euros per meal.
Have a good holiday.
Our coach to Praia Do Vau dropped off in Falesia and it looked good.

Lowey, go down to the large Inter-Marche supermarket on the main road through Olhos d Agua to St Eulalia and do a big shop, the prices are a lot cheaper than the small supermarkets. If you can venture further afield into Albufeira try Pingo Doce or Lidl. Whereabouts are you staying in Praia da Falesia, could it be Acoteias near the Algarve Sheraton or are you nearer to Vilamoura end?

Yes prices do vary a lot As in the UK the 'corner shop' will charge more than the bigger shops. I paid 68 cents for a standard sliced wholemeal loaf the other day, comparable to Sainsbury's. One of those big long sliced loaves can easily be 2,50 in a small shop but half the price in a larger place.

The biggest difference you will experience is the result of the change in the exchange rate. When I moved here 4 years ago it was 1.44 Euro to the pound, now it's about 1.08 That makes everything look around 30% more expensive to UK visitors who haven't been for a while.

A lot of stuff is still less expensive especially fresh fruit and veg and of course wine.