AMC 8 1988 Problem 22

Tom's Hat Shoppe increased all original prices by $25\%$. Now the shoppe is having a sale where all prices are $20\%$ off these increased prices. Which statement best describes the sale price of an item? $\text{(A)}\ \text{The sale price is }5\% \text{ higher than the original price.}$ $\text{(B)}\ \text{The sale price is higher than the original price, but by less than }5\% .$ $\text{(C)}\ \text{The sale price is higher than the original price, but by more than }5\% .$ $\text{(D)}\ \text{The sale price is lower than the original price.}$ $\text{(E)}\ \text{The sale price is the same as the original price.}$