I've also heard that cotton prices are up because of the drought last year, and I can understand that, but I haven't seen a lot of fabric made in the USA. I used to buy lots of fabric from JoAnn's, but the last couple of times I was there, all of the bolts that I pulled were very thin and made in China.
I also buy in a variety of places: thrift, Ad Bulletin (local paper free to call ins), and Connecting Threads has a great section of clearance fabric at 31-50% off. My stash is more than adequate, so I'm not too worried, but I do feel sorry for those beginning quilters.
Joyce