YOu can do better someplace else to purchase items to eat, take home such as cheese, meats and spices, etc, of tourist items to take home. There is such a demand and crowds at the market that they do not have to compete for better prices. It seems to be mostly set for the tourists; either foreign, or Duetsch.
A beer costs 4-5 Euro for 1/2L and the brat maybe 4-5 Euro.
I know, big surprise, but the prices of everything around Munich are jacked up during Oktoberfest.
We paid over $300 night for a hotel room (it was very nice, however)
A liter of beer in the beer tents is about 8 euros
A pretzel at the beer tent is 4 euros (they are huge though)
Everything at the fairgrounds is a lot of money...
The farther you wander from the fairgrounds, the more reasonable. We had dessert and drinks at the Hofbrauhaus, and I dare say prices were normal.
I found that telephone calls and even one page faxes from the hotel were terribly expensive! I think everything in Germany is expensive.