I have noticed prices increasing at JoAnn's too. Sometimes I'll find the same line of fabric for 8.99 at JoAnn's at Walmart for 4.99. I think they just tend to price high though to compensate for the 40% coupons.
I wish my local shop would give us 35% off coupons! She does have reasonable prices for a shop, $8-$8.5o a yard, but I'd spend a heap load more there if she had more sales! :) I have two young children at home so I really have to budget as best I can.