Recession Fears Easing, Study Finds: Inflation will...

Recession Fears Easing, Study Finds: Inflation will increase this year, mainly because of higher costs for food, health care and energy, but fears of a recession are subsiding as interest rates fall, according to a study by Pacific Gas & Electric Co. “The likelihood of a ‘soft landing’--a slower growth economy with moderate inflation--has improved in recent weeks,” said Tapan Munroe, chief economist for the utility. The gross national product growth for the rest of 1989 is expected to be 2.6%, while 1990’s GNP should be 1.2%, the forecast said. Inflation will be higher this year, with a consumer price index increase of 4.9%, compared to 4.1% in 1988.