The version of MySql is 5.0.21. Using MySQl Query browser I can see that product_item.price is defined as DECIMAL(6,2).
I seem to recall running into this same issue using MySQL on Windows. What version of MySQLdb are you using. If I'm remembering this correctly, I was using an older version of MySQLdb which mapped DB float/numeric fields to str and then I updated it and the newer version mapped them correctly to Decimal. Sorry I can't give you specific version numbers right now - I'd have to dig around on my work machine.
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