I think JPEG's color transform is lossy, so even those basic blocks are somewhat lossy. A better approximation of the entire 8x8 block than the exact pixel at the top-left position of the block, which is what FLIF and PNG with Adam7 interlacing do, but still lossy. If you would take an image, magnify it by a factor of 8 in both directions so each pixel gets blown up to an 8x8 block, then convert it to JPEG, there is still some information lost.

It's lossless (in theory) when compared to a 1/64th scaled version of the original image (which is what was clearly meant).