Technically speaking, JPEG refers to a particular algorithm:
JFIF stands for "JPEG File Interchange Format" and is a relatively simple wrapper around a JPEG compressed image. Somewhat confusingly, many people (and books) refer to JFIF as "JPEG files". Thus, when somebody says a file is in "JPEG format" they actually mean it is a JFIF file containing a JPEG-compressed image.
JPEG 2000, is a enhanced version of the JPEG system, which adds a number of features, including better compression, and an optional lossless compression mode (which doesn't reduce file sizes as much as the lossy mode, but preserves the image exactly). At the time of writing, JPEG 2000 is not especially widely supported by software applications.
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