13  Figure 3 Domestic demand and components (real annual change, percent)  8  20  6  15 Private consumption  4 2  Final demand (*)  10 5  0  0  -2  Machinery & -5 equipment (right axis)  -4  -10  Construction & other works  -6  -15  -8  -20 14  15  16  17  (*) Without inventory change. Source: Central Bank of Chile. Figure 4 Labor market (percent)  9  Total employment (annual change)  Unemployment rate  6  10  Self-employed (annual change) (right axis)  3  15  5  0  0  -3  Salaried (annual change)  -6  -5 -10  11  12  13  14  15  16  17  Source: National Statistics Institute (INE). 14  Figure 5 Consumer expectations: IPEC (1)  Interest rate by type of loan (2)  (original series)  (index, July 2017=100)  80 Country's economic Purchases of situation 12 mo.
More specifically, the energy component is the largest contributor to the surging trend of domestic headline inflation (with around 45% share of HICP). We expect that our domestic short-term inflation outlook will continue to remain, overall, at very elevated levels, similar to the euro area inflation developments, amid the ongoing significant uncertainty and volatility resulting from the war. More specifically, Cyprus HICP inflation for 2022 has been revised upwards in our most recent projections, now reaching 8,4 percent compared with 7,0 percent in the CBC June 2022 projections. Banking sector n this ever changing and uncertain economic environment, the Cyprus Banking Sector is proving resilient, exhibiting a solid and healthy financial standing. The solvency position, as measured by the Common Equity Tier 1 ratio was edging up to 17,5 percent in the second quarter of 2022, a level higher than the respective European average of 15,2 percent. The Liquidity Coverage Ratio, indicating the availability of liquid funds against deposit outflows over a 30 day stressed period, stood at the level of 320 percent in July 2022 which is more than 3 times higher than the minimum requirement of 100 percent, placing Cyprus amongst the most liquid banking sectors in the Union, where the average LCR amounts to 168 percent.