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Stock market figures only benefit the wealthy. It is an entirely meaningless figure for measuring the economic situation of a country's population.
Inflation "going down" doesn't mean there is no more inflation. It only means that there is less inflation than before.
Only a minority of the German workforce is even represented by those unions, also, most of them barely managed to get raises covering the recent inflation. Inflation adjusted salaries in Germany have been stagnating and even shrinking for decades now, so whatever has been achieved by the few unions isn't really that impressive in the long run.
The reality of the majority of people in Germany is vastly different from what you are describing.
Keep in mind that "inflation going down" is usually shorthand for the year-on-year inflation rate going down.
If the yoy inflation rate goes down from one month to the next, then prices are still higher than previous year but may very well have fallen since last month.