When inflation is high, it means that the prices of average goods and services cost more than they did before. This can make it frustrating to figure out the right financial moves to make.

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While the U.S. inflation rate has actually cooled to a refreshing, and nearly ideal, 2.3%, down from highs seen during the pandemic, prices have not dropped, and newly imposed tariffs by President Donald Trump’s administration threaten to drive inflation up again.

Rather than panicking, financial experts offered some financial priorities to pause during periods of inflation, and those to focus on.

Pause: Cash Savings

It might sound counterintuitive, but according to Jamie Ebersole, a CFP, founder and CEO at Ebersole Financial, you actually want to pause new contributions to your savings account and reduce your checking account balance to the lowest possible level (within reason) during high inflation.

That’s because “cash depreciates very quickly in times of high inflation. Wait until inflation rates have fallen below current interest rates to once again keep significant amounts of money in cash,” he said.

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Pause: Extra Mortgage Payments

High inflationary periods are also not a good time to be dropping extra mortgage payments on a fixed rate mortgage, Ebersole said.

“As inflation creeps up, the real rate of interest that you pay will decrease, making the loan much more affordable over the longer term,” he said.

In essence, you will be paying back the loan in the future with depreciated dollars.

“The reverse is also true. When interest rates are very low, you should prepay your mortgage to reduce the effect of higher real future interest costs,” he said.

Pause: Big-Ticket Purchases

It’s important to pause your lower-priority items like large renovations and family trips, according to Shalini Dharna, a CPA and owner of Dharna CPA. Or these may need to be modified (think staycation or local tourist).

Focus On: Investing in the Stock Market

You may pause cash savings in periods of high inflation, but you should keep investing in the stock market in the same periods, Ebersole said.

“Stocks tend to perform well in such periods and they are the best chance you have to grow your assets to keep up with or surpass inflation levels over the intermediate and longer term.”

The exception here are bonds, which do not fare well with high inflation. However, I-Bonds or TIPS (Treasury Inflation Protected Securities) are a good investment in times where inflation is higher than expected, Ebersole said.