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Definitions For the purpose of this Regulation the following definitions shall apply:

(a) ‘Purchasing Power Parities’ (‘PPPs’) shall mean spatial deflators and currency converters that eliminate the effects of the differences in price levels between Member States thus allowing volume comparisons of GDP components and comparisons of price levels.

(b) ‘Purchasing Power Standard’ (‘PPS’) shall mean the artificial common reference currency unit used in the European Union to express the volume of economic aggregates for the purpose of spatial comparisons in such a way that price level differences between Member States are eliminated.

(c) ‘Prices’ shall mean the purchaser prices paid by the final consumers.

(d) ‘Expenditure weights’ shall mean the shares of expenditure components in current-price GDP.

(e) ‘Basic heading’ shall mean the lowest level of aggregation of items in the GDP breakdown for which parities are calculated.

(f) ‘Items’ shall mean goods or services precisely defined for use in price observation.

(g) ‘Actual and imputed rentals’ shall have the meaning attributed to it in Commission Regulation (EC) No 1722/2005 ().

(h) ‘Compensation of employees’ shall have the meaning attributed to it in Regulation (EC) No 2223/96.

(i) ‘Temporal adjustment factors’ shall mean factors used to adjust average prices obtained at the time of survey to annual average prices.

(j) ‘Spatial adjustment factors’ shall mean factors used to adjust average prices obtained from one or more locations within the economic territory of a Member State to national average prices.

(k) ‘Representative items’ shall mean those which are, or are considered to be, in terms of relative total expenditure within a basic heading, among the most important items purchased in national markets.

(l) ‘Representativity indicators’ shall mean markers or other indicators identifying those items that Member States have selected as representative.

(m) ‘Equi-representativity’ shall mean a property required of the composition of the item list for a basic heading, each Member State being able to price that number of representative products which is commensurate with the heterogeneity of the products and price levels covered by the basic heading and its expenditure on the basic heading.

(n) ‘Transitive’ shall mean the property whereby a direct comparison between any two Member States yields the same result as an indirect comparison via any other Member State.

(o) ‘Mistake’ shall mean a use of incorrect basic information or an inappropriate application of the calculation procedure.

(p) ‘Reference year’ shall mean a calendar year to which specific annual results refer.

(q) ‘Fixity’ shall mean that when results are calculated originally for a group of Member States and then later the results are calculated for a wider group of Member States, the PPPs between the original group of Member States shall nevertheless be preserved.