If inflation is 'cooling,' why are prices still so high?

Inflation cooled during June, partially due to a decrease in gas prices. Despite this cooling trend, the annual inflation rate for June reached 3.5%. This specific figure represents the highest monthly inflation rate recorded throughout the year 2025. Consequently, while certain sectors saw price drops, the overall annual rate remained elevated compared to previous months, explaining why many prices continue to stay high for consumers despite the reported cooling of inflation.