Bank of America Global Research reviews today's US August CPI report.

"Headline CPI rose 0.4% m/m, in line with expectations. However, core CPI came in firmer than expected at 0.3% m/m (0.29% unrounded), leaving the y/y rate unchanged at 3.4%. The details also prompted us to revise our August core PCE tracking estimate up from 0.26% m/m to 0.30% m/m.," BofA notes.

"Combined with current market pricing of 21bp for next week's FOMC meeting, today's report should greenlight a Fed hike," BofA adds.