Revenue from the state's sales tax has continued its upward trajectory in the first three months of 2023, but is also showing signs of slowing down.

It's potentially a sign of inflation being tamed or consumers pulling back amid ongoing high prices.

Comptroller Tom DiNapoli's office on Wednesday said local governments in New York saw a 7% increase in revenue from the tax in January, February and March. But zooming in, the picture changes.

Sales tax growth increased by 9.2% in January and by 14.1% in February. But in March, growth was an anemic .03%, DiNapoli's office said.

“Sales tax collections were quite strong in the first quarter,” DiNapoli said. “New York City’s ongoing recovery from the pandemic, as well as high inflation, continues to bolster statewide numbers. For the rest of the state, collections growth has generally returned to the rates seen before the pandemic.”

New York City's sales tax collections alone reached $2.5 billion, a 11.3% increase in the first quarter compared to the same time a year ago. It's the eighth quarter in a row of double-digit percentage growth in revenue from the tax.