Basic heading

In the context of the International Comparison Program (ICP), a basic heading is "the lowest level of aggregation within the national accounts at which the expenditure and expenditure share data are available". In the ICP goods aggregation hierarchy, it is just one level above items. In the ICP hierarchy, the level above basic headings are classes.

"The ICP uses a pyramid structure similar to that used in the standard CPI compilation. Starting with a list of products, the prices of goods and services are aggregated into basic headings. These basic headings are identified on the basis of standard sample survey principles underlying the identification of strata in a stratified sampling framework. The basic headings consist of all the items which have a low dispersion of price ratios. They therefore provide reliable estimates of PPPs for the basic heading level."

Examples

• Rice