Compared to Portland, $7 a beer is actually pretty expensive. Not as crazy as the mythical $15, but for a local craft beer it should be more like $5-6. But that could all just be taxes.
(and we do have $7-12 beers, they're just known to be extra fancy or aged)
What do people normally count in cost of living? Utilities and services are fine, and groceries are easy to find reasonably priced. Transportation is fine.
So I think as others have mentioned, rent and house prices are the things climbing sharply. I know someone paying $900 for a room in a 3 person house, in a really great part of town (Division, for locals). I've heard studios go for well over $1000, and fill up fast. But really, you don't have to look very hard to find something cheap(er). Surrounding areas (with new access to light rail that goes down town) are reasonable.
I don't think it's really as bad as some people make it out to be, but it definitely is getting more expensive in town. I mean, that's the nature of the housing market recovery :)
Overall Portland is still relatively cheap. The only thing getting out of control is rent and house purchasing (because of the serious lack of inventory), but the entire nation is seeing this so it's not specific to Portland.
(and we do have $7-12 beers, they're just known to be extra fancy or aged)