Answer:
An annual inflation rate of 2.5% means that, on average, the prices of goods and services in the economy increased by 2.5% over the course of the year, from October 2015 to October 2016. This indicates a moderate level of inflation, which can have various economic implications, including changes in the purchasing power of money and the cost of living for consumers. Central banks and policymakers often monitor inflation rates to make informed decisions about monetary policy and economic stability.
Step-by-step explanation: