"Inflation" calculated as a % from some past number may (or may not- see below) be dropping. The prices (doubled and trippled from several years ago) caused by past inflation haven't been reduced , or not by much. So now they are counting inflation "increases" based off the newer high prices, not what was 3 to 5 years back. As well as just throwing out several key segments in their calculations to make the pre-determined mark.
Unless you have deflation, which is pretty rare- you are correct the prices will never return - the current inflation rate is a snapshot. The only truly lengthy period of deflation was 1930-1933 and a much milder "deflation" happened in 2007-2008 but it was a blip compared to the Great Depression.
Unless someone is at least in the top 95% of income earners (maybe even top 97% to 98%) chances are their purchasing power has been pinched on just about everything but especially in big ticket items like homes / cars / etc.
