ISTQB Definition(priority: The level of (business) importance assigned to an item.)
Priority of a bug is impact on application business. majorly bugs are having impact on business always . Impact can be differ of a bug at application. Hence priority can be define in many types as per industry aspects.
Mostly priority is categorized as High, medium and Low.
For example : Material calculator is not function in inventory system. This issue is of High priority.
ISTQB Definition(severity: The degree of impact that a defect has on the development or operation of a component or system.)
Severity is measured by the impact of bug at application functions. it normally indicates, how functioning is impacting application working. Severity is also organization specific. but as standards.
Five types are define.
Blocker: This leads to state when no further testing is possible.
Critical: User is having data lose, crashes,exception in execution but application can tested.
Major: A function is not working.
Minor: A function is not working in few aspects.
Trivial: Insignificant impact of issue at application.