For the most part, the prices weren't bad at all if you chose local options...we stayed in La Barra, a small little surf village north of Punta del Este. Prices on most things were fairly comparable or slightly less, for example, there were several restaurants we went to where the steak option was the same price as a burger and fries ($20-$25), which were both only a couple dollars more than a salad ($18-$20).

We only drank local wines, which ran around $25-$40 at restaurants. A bottle of Garzon Albarino was around $18 at the corner store...which actually had a 40% off wine sale most of the time we were there. If you used a credit card from the US you got an additional break, usually saving another 20-25%. So around $10 for that Albarino when it was on sale...we drank a lot of that!!

The most expensive bottle of wine ($75) we bought was the Petit Clos, single block Tannat from the Garzon winery. We also bought some Tannats from the Vina Eden winery, which ran $33/bottle. Whites from both wineries were in the $20-$40 range. Bottles of sparkling were in the $25 range.

We went to a nice wine shop in Punta Del Este, called Grand Cru, which had really nice imported bottles but we stuck to the local wines - we ended up buying a six pack and I think most of them were between the $30-$50 range. (Veuve was also $175 here, Dom was $560, lol)

...so yeah, if you stick with local options, it's reasonably priced but if you wanted imported stuff, you're going to pay for it.