Show FAVORABLE FORECAST D downward q w n ward price trend seen NEW YORK with the postwar inflationary price rise apparently nearing an end the probabilities seem to favor a downward move ment of the price index in the next 12 months it is predicted in a re port on the price level released by bankers trust company the report pre prepared parea by roy L of the bank s economic de apartment part ment added that the prices of some manufactured goods may show a further modest and ably temporary rise but it is be deved that any such tsuch movement will be more than offset by declines in prices of farm and food corn com ry and other materials the bank warned however that a combination of contingencies such as bad weather and a substantial deterioration of domestic crop pros pacts could upset its forecast after examining the factors in evolved in the present rise as corn com pared with those in the price lump jump following world war wat I 1 the bank said since the all commodity wholesale price index has not in creased as much this time as in lorld war I 1 it is likely that the de dine cline in the price level will not be as severe during this correction per od as it was in 1920 1921 the bank cited a number of fac tors to support its view A collapse in farm prices does not appear im lin eminent in the near future it said food prices although below recent highs are supported by a high level of employment and national in come prices of many aured goods have risen only mod estly despite greatly increased costs of labor and materials furthermore it is pointed out the greatly increased supply ol 01 savings and liquid assets may pro vide some support for the price level the business inventory situa tion moreover does not appeal comparable to the excessive mone tary speculation following world war I 1 |