Money being created is like pouring water into a pool - it creates ripples outwards. Eventually, if you stop, yes the surface of the pool will become calm and the pool will be higher. But whilst you're pouring, the volumes are not even.
These days, when the government creates money it doesn't put that money into everyone's bank account overnight. When was the last time you got a cheque from the government labelled "new money"?
Instead the central bank engages in various forms of manipulation, like via the "QE" programmes that involved asset purchases. So, the prices of certain financial assets go up. They also purchase a lot of government bonds, or that money eventually makes its way into corporate debt. And what do governments do with this money, well, they often spend it on things like subsidising mortgages, or subsidising private banks (via bailouts), or healthcare, or education, or paying a large staff of government workers, or buying military hardware, etc.
So you go look at what's gone up in price very fast over the years and hey, look at that, it's the stuff near the centre of the pool. Things that governments tend to subsidise a lot or things that people feel they have to buy regardless of cost, like education, healthcare, homes, etc. The money pouring into the system ends up stacking up in a few places, it's not evenly distributed.
The last round of quantitative easing by the Federal Reserve, QE3, ended in 2014. (QE1 began in 2008.) If these price effects for health care and housing began in 2008 and ended in 2014, it would make sense to blame QE, but they didn't, so it doesn't.
Price effects that are associated with government vs. private expenditures are not the same as inflation. That's just governments being bad (perhaps intentionally bad?) at spending taxpayer money efficiently. However, when it comes to health care in particular, that just isn't the case either--Medicare and Medicaid pay much lower prices for medical procedures than private insurance companies do.
The main way it's created is through loans, many of which end up in housing. And rampant speculation on apparently ever-rising house prices is where the financial crisis started. Ripples expanding ever outwards ...
> the price of everything rises by the same proportion
Due to regulation, that's simply not the universal case - e.g. rent control. The economy is conceptual, but prices are concrete leading to some ironic situations.