percentage points

Absolute rate change

Percentage points measure the arithmetic difference between two percentages.

If unemployment rises from 5% to 8%, it has increased by three percentage points—not three percent, which would be a much smaller change.

The distinction matters in statistics, economics, and polling, where confusing the two produces significant errors: Interest rates dropped by half a percentage point.

Related

margin · margin of error · quantitative · finance · rate · intervals · gap · comparison · bps · spread · interest rates · federal reserve · fractions · adjustment · variance · inflation rates · trend analysis · ratios

Categories
Opposites
type of percentage change measurement

percentage pointspercent change

Relative increase or decrease

percent · percent increase · basis points · growth rate · rate of change

absolute vs. relative measurement

percentage pointsratio

Comparative numerical relation

percent increase · growth rate

unit granularity

percentage pointsbasis points

Hundredths of a percent

order of magnitude · round numbers

Family

percentage, point, percent, cent, percentile, percentages, points, pointed, pointer

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Top 200,000
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Used worldwide · Timeless · Abstract · Everyday, not technical · Rated G