I read that article too. It is completely off the wall. Rent is very cheap there, food in restaurants is half the price of the same type meal in Frankfurt, and basically the prices were all wrong. They had a kilo of rice priced at over $5.00, beer from a grocery store was so wrong it made me laugh. I have no idea where these people went shopping, but it certainly wasn't your everyday grocery store, where you can pick up a can of beer for under a euro and a kilo of basmati rice for about $2.50.
Students love going to university in Berlin because it is so much cheaper to live there than anywhere else in Germany.
As to Prague, one of our friends is from there and even she says it is getting impossibly expensive and the crowds of tourists make being there not very much fun anymore.