Inflation in items of daily use I was reading a document released by our Central Bank and I came across this line:


  Finally, inflation in the items of daily use was much lower as
  compared to other items. The contribution of essential items of daily
  use was only 1.1 percentage points in the overall inflation of 4.5 %
  in FY15.


What does this mean in very simple terms? How do I explain this to school going children, for example?
This means items of daily use did not experience price increases as much as items that are not of daily use.

Let's say half expenditures are on items of daily use. Then an increase of 2.2 percentage points will make these contribute 1.1 percentage points in total inflation. To make numbers match, the remaining 3.4 percentage points of total inflation must then have been contributed by a 6.8 percentage point price increase in items not of daily use.