Percentage Points vs. Percent Change
Percentage-point change = new rate − old rate. Relative percent change = difference ÷ old rate × 100..
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Formula and worked example
Percentage-point change = new rate − old rate. Relative percent change = difference ÷ old rate × 100.
A rate moving from 5% to 6% rises by 1 percentage point, but by 20% relative to its starting rate. From 20% to 22% is +2 percentage points and +10% relative change.
Why the distinction matters
A fall from 10% to 9% is 1 percentage point, while the relative decrease is 10%. These statements describe different quantities.
Common mistake
Use the original value as the baseline for relative change. A percentage calculation can give a different answer when the denominator changes.
Related percentage guides
Source & methodology
BLS distinguishes changes in an index level from relative percent changes; this page applies the same distinction when explaining percentage points versus percent change.