I totally agree, prices down here are jumping too. I have been using up stash and filling in when necessary. I do try to shop the few shops we have in the area but I find myself waiting for 50% off sales to purchase backings and 20 to 30% off sales to buy fabrics to fill in.
I'm afraid our quilt shops are going to be a thing of the past if this economy doesn't settle down. I have a longarm and do quilts for friends and guild members for a low price and that has really slowed down. I am fortunate to have built up a large stash so I'll still be quilting for awhile.