ASo fabric prices have slightly outpaced inflation, but not significantly.
This is true, and fabric has always been more expensive in other countries, so we are fortunate in the US.
While fabric is one of the heftier parts of my quilting budget, it is worth it for me. I keep an eye out for what I consider exceptional fabrics for my preferred style of quilting, and use my fabric budget to get the best of those I can afford. I will not buy fabrics that are poor quality.
I keep a big stash because it suits my style of quilting. I frequently find that, when searching for the "one perfect fabric" to complete a quilt, it turns out to be one I bought years ago without a specific project in mind: it seems a fabric you find truly outstandingly beautiful never goes out of fashion.
I know it is tough when you are working with a limited budget, but if I don't love a fabric, I don't want it in my quilt, no matter what the price.