Show FAVORABLE FORECAST downward price trend rend seen NEW YORK with the postwar inflationary price rise apparently nearing an end the probabilities I 1 seem to favor a downward movement of the price index i in the next 12 months it is predicted in a report on tile the price level released by bankers trust company the report prepa prepared red by roy L Re ferson of the ban banks its 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 tte prices of farm and food corn and other materials the bank warned however that a combination of contingencies such as bad weather and a substantial deterioration ot of domestic crop prospects could upset its forecast after examining the factors involved in the tha present rise as compared with those in the price jump following world war 1 I the bank said sa id since the all commodity wholesale price index has not increased as much this time as in world war I 1 it is likely that the decline in the price level will not be lis as severe during this correction period as it was in 1920 1921 the lank bank cited a number of factors to support it Us s view A collapse in farm prices does not appear imminent 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 ol 01 savings and liquid assets may provide some support for the price level the business inventory situation moreover does not appeal comparable to the excessive monetary speculation following world war I 1 |