Foundations

Does a higher price mean a bigger rise?

The height of a line is not a measure of its percentage growth.

The short answer

Price levels alone do not measure value, quality or future performance. Even in a simple educational comparison, the denominator determines the relative change. A shared price chart and an indexed chart each reveal something different.

A worked example

Illustrative data · No live market prices

One illustrative price moves from £10 to £12. Another moves from £100 to £110. The second remains higher throughout and adds more pounds. The first increases by 20%, compared with 10% for the second.

Your turn

Use Compare Lab in Price mode, then switch to Indexed to 100. Explain why B is the higher line in one mode but A has the higher endpoint in the other.

What this does not tell you

An illustrative calculation does not explain causes or predict future results. Check the dates, units and missing observations before using the method elsewhere.

Related term

Absolute change

Sources & review

Original Charts Haven example. All stated numbers are illustrative and allow you to repeat the calculation.

Editorial Policy · ONS

Next lesson: Compare the scales