A rate changing from 10% to 12% can be described in two valid but distinct ways.
Percentage points
Subtract the two rates directly: 12 − 10 = 2 percentage points. This expresses the absolute gap between rates. It does not measure the relative increase.
Relative change
Use 10 and 12 in the percentage calculator. (12 − 10) ÷ 10 × 100 = 20%. The new rate is 20% higher relative to the old rate. Label a report clearly so readers know which quantity you mean.
Avoid misleading comparisons
A move from 1% to 2% is only one percentage point but a 100% relative increase. Neither description alone tells you the sample size, uncertainty or economic effect. Read the original context before drawing conclusions.
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