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Guide answer

From 4% to 5%: one point or 25%?

It is a rise of one percentage point and a relative increase of 25%. Percentage points subtract the displayed rates: 5% − 4% = 1 point. Percentage change divides that gap by the starting rate: 1 / 4 = 25%. Writing only “a 1% rise” is ambiguous and usually understates the relative change; name the unit so the reader knows which comparison you made.

What to take away
  1. Percentage points compare two percentages directly; percentage change compares the gap with the starting percentage.

  2. The relative figure becomes large when the starting rate is small, even if the point movement looks modest.

  3. State “percentage points” in full whenever reporting an absolute movement in a rate, margin or poll share.

The full explanation

A rate moving from 4% to 5% has risen by one percentage point and by twenty-five per cent, and both statements are correct. The confusion between them is the single most common numerical error in published writing, and it is the same confusion behind why a 50% loss needs a 100% gain to recover. Read the complete guide for the reasoning, examples and definitions behind this answer.

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