Why is inflation so low but everything seems to be increasing in price?

Because Gordon fiddled the figures, that's why. Take a read of this from Stumbling and Mumbling. "the CPI gives a weight of 2.9% to audio-visual equipment, prices of which have dropped 13.5% in the last year according to its measure. The RPI gives this just a 0.8% weight, giving less deflationary pressure. The CPI reports that alcoholic drink prices have risen just 0.4% in the last 12 months. The RPI measure puts the rise at 2.5%. The RPI reckons clothing prices have dropped 1.7% in the last year. The CPI thinks they've fallen 4.8%. CPI says furniture prices have risen 2.4%; RPI says 4.3%. CPI says package holidays' price have risen 1.1%; RPI says 2.6%."

Do read the rest, it is an article that I wish I had written.