Show I FA FAVORABLE FORECAST I Downward Price Trend Seen NEW YORK With YORK With the postwar inflationary price rise apparently nearing an end the probabilities s seem to favor a downward movement movement movement move move- ment of the price index in the next 12 months it is predicted in a report report report re re- re- re port on The Price Level released by Bankers Trust company The report prepared by Roy L. L of the banks bank's economic department department department de de- de- de added that the prices of some manufactured d goods may show a further modest and probably probably probably ably temporary rise but it is believed believed believed be be- that any such movement will willbe willbe willbe be more than offset by declines in inthe inthe inthe the prices of farm and food commodities commodities commodities com com- and other materials The bank warned however th that thata t ta a combination of contingencies such as bad weather and a sub substantial deterioration of domestic crop prospects prospects prospects pros pros- pros pros- could upset its forecast After examining the factors in involved involved involved in- in in the present rise as compared compared compared com com- pared with those in the price jump following World War I the bank said since the all aU commodity wholesale price index has not increased increased increased in in- creased as much this time as in World War I 1 it is likely that the thede decline de dc- cline dine in the price level will not be beas beas beas as severe during this correction period as it wan wat in 1920 The bank cited a number of factors factors factors fac fac- fac- fac tors to support its view A collapse in farm prices does not appear imminent imminent imminent im im- im- im in th the near future it said Food prices although below recent highs are supported by a high level of employment and national in in- come Prices of many manufactured manufactured manufactured goods have risen only modestly modestly mod mod- estly despite greatly increased costs of labor and materials Furthermore it is pointed out the greatly increased supply of savings and liquid assets may provide provide provide pro pro- I vide some support for the price level The business inventory situation situation situa situa- tion moreover does not appear comparable to the excessive monetary monetary monetary mone mone- tary speculation following World War Var I I. I S |