The Red Book by Barbara Lehman (a Caldecott honor book) is a fantastic way to teach Inferencing. There are no words in the book, only pictures. The author tells them NOTHING!! She does, however, leave them great clues. It's up to them to "use the clues" to determine what's happening in the book and how the characters are related.
After you have shared the book (I use my document camera to project the book so everyone can see the pictures clearly) let your kids pick one of 5 cartoons that have no words. They have to infer what's happening.
This is a really great way to introduce this concept.
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