Percentage change $ = \dfrac{\text{Final value – Initial value}}{\text{Initial value}} \times 100\%$
$\implies \%$ change $= \dfrac{1-1.25}{1.25} \times 100\% = \dfrac{-025}{1.25} \times 100\% = -20\%$ (Here, negative represent reduction in the price)
S, the correct answer is $(A).$