Saskatchewan's inflation rate was running at 2.7 per cent in August, the highest in Canada. (Statistics Canada)

Saskatchewan had the highest inflation rate in Canada last month, Statistics Canada says.

According to the federal agency's monthly report on the consumer price index, prices went up 2.7 per cent from August 2013 to August 2014.

Canada-wide, the consumer price index increased 2.1 per cent over the same period.

Prince Edward Island was the province with Canada's lowest inflation rate: 1.2 per cent.

The StatsCan report said among the provinces, Saskatchewan recorded the highest year-over-year increase in the purchase of passenger vehicles index (6.1 per cent).

Saskatchewan was also one of three provinces (the others being Ontario and Alberta) where gasoline prices in August were higher than a year ago.