2.5% annual salary review

Company I work for has announced they will be increasing salary across the board 2.5%. Though as some employees will receive promotions, and by outstanding performance, will get bigger increases. This is down from (I think) 3% last year.

I viewed this as decent considering company budget decreased year over year. A colleague has shared their frustration being it’s not above inflation and a not a real pay rise.

Wondering how this compares to your companies or previous workplaces?