UPDATE 1-Japan ruling party proposes cash handouts to counter rising prices

(Recasts with details, context on Japan's economy) By Satoshi Sugiyama and Kentaro Sugiyama TOKYO, March 15 (Reuters) - Japan's ruling party on Wednesday proposed fresh steps to cushion the economic blow from rising living costs, including cash payouts to low-income households. Koichi Hagiuda, the Liberal Democratic Party's policy council chair, told reporters the party expects the plan to include payouts worth 30,000 yen ($222) to low-income households. The proposal also called for steps to curb utility bills and moderate price rises for imported wheat. Kishida last week instructed the ruling coalition to propose a package of measures to counter rising prices, aiming to shore
up a fragile economy still hurting from the COVID-19 pandemic. Japan's core consumer inflation hit 4.2% in January, a fresh 41-year high and more than double the central bank's 2% target, as companies pass on higher raw material costs to households. Japan's economy narrowly averted a recession in the final months of 2022 after contracting in the third quarter, data showed last week, highlighting the fragile state of consumer spending. Incoming Bank of Japan Governor Kazuo Ueda has stressed the need to keep monetary policy ultra-loose until the economy is on a stronger footing with higher wage growth accompanying the rise in inflation. ($1 = 134.7000 yen) (Reporting by Satoshi Sugiyama and Kentaro Sugiyama; Writing by Leika Kihara; Editing by Tom Hogue and Edwina Gibbs)