This report discusses use of the Consumer Price Index (CPI) to compute cost-of-living adjustments for wages and salaries in general and teachers' salaries in particular. A number of tables and graphs compare average annual salary increases for Connecticut teachers in 1967-74 with annual increases in the national CPI, the Boston area CPI, the New York-New Jersey metropolitan area CPI, and pay increases for other professional and industrial employees. Although many of the statistics apply specifically to teachers in Connecticut, most of the discussion applies to other areas as well. The author considers the pros and cons of tying salary increases to the CPI and conclude that, although the CPI is a useful indicator of economic trends, it should not be used as the sole basis for salary determination. (JG)