Percentage point
The plain difference between two percentages: from 3% to 4% is one percentage point.
1 min read · Reviewed September 2026
In plain words
A percentage point (pp) is the arithmetic difference between two percentages. If inflation falls from 8% to 3%, it fell by 5 percentage points. Saying it fell "by 62.5%" would be technically correct but confusing — percentage points are clearer.
Frequently asked questions
What is the difference between percentage points and percent?
If inflation rises from 2% to 3%, it rose by 1 percentage point (absolute difference) or by 50% (relative change). In inflation reporting, percentage points are almost always used — saying inflation "rose 50%" when rates went from 2% to 3% would be misleading.
Further reading