There are many reasons for the increased prices, I think. Not in any order! Here goes: We pay 15% Value Added tax ( recently reduced fron 17.5%) on fabric, wadding , thread etc. Many fabrics are imported from the US. The costs of importation have all rocketed in recent years as oil prices etc have gone through the roof. Our local taxes have also been going up and I guess that our store owner also need to make a profit! Our housing costs have always been much higher than yours too. In the south of England, (and I know that prices have escalted in other regions too, )you would be very hard pressed to buy an English sized 3 bed, 1 bath family house ( tiny by US standards) for much less than £250,000. ! Many Americans do not travel outside of the US and dont see how it is relatively much less expensive to live- and quilt- in the US. Your food, gas and utilities costs, though rising in recent years, have always been significantly lower than Europe, and maybe OZ and NZ before that.