The trunk area is not "sealed" from the cabin (the seats even fold down), so of course smells / air could go from the trunk to the cabin.
With that being said, many times, that smell is caused by mold / mildew starting to grow in the cabin air filter. Search this site for "smell from AC" or something like that, and you should see quite a few threads on that.
But, if you left wet things on the fabric in the trunk, and it didnt dry out properly, you could get that smell from the trunk, sure.