18 Sep 2026

pp

Percentage points

The difference between two percentages. A rate rising from 4 % to 4.5 % has risen 0.5 pp, not 12.5 %.

Percentage points measure the arithmetic difference between two rates, while percent measures a relative change. The Sahm rule, yield-curve spreads, credit gaps and the distance to an inflation threshold are all in percentage points, because they compare one rate with another.

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Sahm rule · threshold

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