No, there is no inflation. When the Fed talks about inflation it talks about CPI inflation. Why is the CPI inflation rate important? Because unlike stocks and houses and other assets CPI tracks the real economy. If unemployment or underemployment is high then CPI inflation is low which tells you that the economy is doing very poorly. Most economies had their highest growth during years with moderate inflation. Maybe 4-5%.

What you are calling inflation is actually the opposite. It's deflation. When hoarding assets becomes more profitable than working, the real world economy starts dying and CPI reflects that very well.

Workers benefit from inflation because inflation is generally followed by productive investments. Driving prices of consumer goods up makes it profitable to produce them which makes it profitable to employ people to produce them.

Deflation makes it harder to run a profitable business but it also makes it easier to run a non profitable business (that also includes overvalued businesses that do not earn enough to justify their valuation).