Not only have fabric prices increased dramatically in the last two years, it also costs a lot more to get them shipped in to the store. Most shops have seen their shipping prices increase at the same rate as their fabric prices.
List prices on new premium fabrics now are mostly 11.95-12.95/yd. If you see shops selling brand new lines for less than that, they're trying to move fabric in volume, or they are very close to distributors so they don't need to have fabrics shipped.
We've quit buying from east coast distributors and are focusing on west coast distributed products just because of the shipping costs, except for specific items that we want that have to be shipped in from overseas.
We recently had a bunch of fabrics shipped direct from Europe, that aren't available in the USA -- the shipping cost and brokerage fees alone were nearly 3 dollars per yard.