Germans Must 'Stick Together' Over Cost of Living Crisis

German Chancellor Olaf Scholz has urged the public to face the country's economic problems together, as inflation in Europe's leading economy remained stubbornly high.

Scholz published a new video in his weekly podcast, admitting that rising prices were troubling many citizens. He called for the population to "link arms and stick together," DW reported at the weekend.

Just days after data showed prices rose 7.6% in June compared to a year earlier, Scholz said he would convene a meeting of experts to tackle the cost of living crisis.

The chancellor said he has invited trade unions, employers, the central bank (Bundesbank) and academics for a summit that kicks off Monday at the chancellery in Berlin.

The campaign, dubbed "Concerted Action," echoes similar efforts by former West German chancellors in the 1960s and 1970s.

Economists and politicians have mooted several ideas in recent days to ease the burden on personal budgets.

Labor Minister Hubertus Heil has called for an annual payment for single people earning less than €4,000 ($4,170) gross per month and for married people earning less than €8,000 together.

The chancellery says it is keen to find alternatives to much higher wage increases during collective bargaining rounds with unions in order not to fuel further inflation.

However, the German Institute for Economic Research (DIW) said one-off payments would only provide temporary relief.

"Only higher wages and social benefits can sustainably compensate for the damage to people with medium and low incomes," DIW's president Marcel Fratzscher told dpa news agency.