No. A rate moving from 4% to 5% increases by 1 percentage point, not by 1% relative to its previous value. Its relative increase is 25%.
The UK's Office for National Statistics defines a percentage point as the difference between percentages. The EU's data visualisation guide separately explains relative percentage change: subtract the original value from the new value, divide by the original value, and express the result as a percentage. Here, (5 − 4) ÷ 4 × 100 = 25%.
These figures describe the same change using different comparisons. Percentage points describe the gap between two rates; percentage change describes that gap relative to the starting rate. Neither figure alone establishes how a person's total bill, loan payment or income will change.
From 4% to 5% means a rise of 1 percentage point, equivalent to a 25% relative increase in the rate.
Office for National Statistics
ONS distinguishes a percentage-point change from a relative percentage change. Applying its definition, 5% minus 4% equals 1 percentage point.
Based on: Office for National Statistics
data.europa.eu
The EU guide explains that relative percentage change compares the difference with the initial value. Applying that method to 4% and 5% gives a 25% increase.
Based on: data.europa.eu
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