| Show FAVORABLE FORECAST I 1 downward price f trend T end seen NEW YORK with the postwar inflationary price rise apparently nearing an end the probabilities seem to favor a downward movement of the price index in the next 12 months it is predicted in a report on the price level released by bankers trust company the report prepared by roy L of ct the banks economic department part ment added that the prices of some manufactured goods may show a further modest and probably temporary rise but it is believed that any such movement will be more than offset by declines in the prices of farm and food coat commodities modi ties and other materials the bank warned however that a combination ot of contingencies such as bad weather and a deterioration of domestic crop prospects could upset its forecast after examining the factors involved in the present rise as corn compared with those in the price jump following world war I 1 the bank said since the all commodity wholesale price index has not increased as much this time as in world war 1 I it Is likely that the decline in the price level will not be as severe during this correction period as it was in 1920 1921 the bank cited a number of factors to support its view A collapse in farm prices does not appear I 1 imminent in in the near future it said food prices although below recent highs are supported by a high level of employment and national income prices of many manufactured goods have risen only modestly despite greatly increased costs of labor and materials furthermore it is pointed out the greatly increased supply of savings and liquid assets may provide some support for the price level the business inventory situation moreover does not appear comparable to the excessive monetary speculation following world war 1 I |
