Your multimeter is not being tricked.

It's reading the Rms voltage and Rms current. This voltage and current multiplied together will give the apparent power.

If you multiply this apparent power (va) by the power factor, you get real power (w).

Power factor is true power divided by apparent power.

PF is where voltage and current are out of phase with each other making it more inefficient for power companies to transfer the same power. They need larger transformers and wire to overcome poor PF.

When you have inductive loads the current lags voltage. The resulting phase angle makes it harder for the utility to transmit and more current is necessary to deliver the same power.

Here in the states, utility companies can charge a fee for industrial settings, where poor PF are found (like large inductive motors) but not for residential customers.

But remember, you are not consuming any more power and are not being charged for any more. You are paying by the kwh, not just by the amperage. When an inductive load is switched off the magnetic field collapses and the back emf is returned.

so, I'd say power factor is really more of a power utility concern than a residential one.