diff --git a/src/compiler/checker.ts b/src/compiler/checker.ts
index ecbc98ee4955c..cf5c410995de8 100644
--- a/src/compiler/checker.ts
+++ b/src/compiler/checker.ts
@@ -22556,15 +22556,11 @@ namespace ts {
                     inferFromTypeArguments(getTypeArguments(source as TypeReference), getTypeArguments(target as TypeReference), getVariances((source as TypeReference).target));
                 }
                 else if (source.flags & TypeFlags.Index && target.flags & TypeFlags.Index) {
-                    contravariant = !contravariant;
-                    inferFromTypes((source as IndexType).type, (target as IndexType).type);
-                    contravariant = !contravariant;
+                    inferFromContravariantTypes((source as IndexType).type, (target as IndexType).type);
                 }
                 else if ((isLiteralType(source) || source.flags & TypeFlags.String) && target.flags & TypeFlags.Index) {
                     const empty = createEmptyObjectTypeFromStringLiteral(source);
-                    contravariant = !contravariant;
-                    inferWithPriority(empty, (target as IndexType).type, InferencePriority.LiteralKeyof);
-                    contravariant = !contravariant;
+                    inferFromContravariantTypesWithPriority(empty, (target as IndexType).type, InferencePriority.LiteralKeyof);
                 }
                 else if (source.flags & TypeFlags.IndexedAccess && target.flags & TypeFlags.IndexedAccess) {
                     inferFromTypes((source as IndexedAccessType).objectType, (target as IndexedAccessType).objectType);
@@ -22577,10 +22573,7 @@ namespace ts {
                 }
                 else if (source.flags & TypeFlags.Substitution) {
                     inferFromTypes((source as SubstitutionType).baseType, target);
-                    const oldPriority = priority;
-                    priority |= InferencePriority.SubstituteSource;
-                    inferFromTypes((source as SubstitutionType).substitute, target); // Make substitute inference at a lower priority
-                    priority = oldPriority;
+                    inferWithPriority((source as SubstitutionType).substitute, target, InferencePriority.SubstituteSource); // Make substitute inference at a lower priority
                 }
                 else if (target.flags & TypeFlags.Conditional) {
                     invokeOnce(source, target, inferToConditionalType);
@@ -22631,6 +22624,20 @@ namespace ts {
                 priority = savePriority;
             }
 
+            function inferFromContravariantTypesWithPriority(source: Type, target: Type, newPriority: InferencePriority) {
+                const savePriority = priority;
+                priority |= newPriority;
+                inferFromContravariantTypes(source, target);
+                priority = savePriority;
+            }
+
+            function inferToMultipleTypesWithPriority(source: Type, targets: Type[], targetFlags: TypeFlags, newPriority: InferencePriority) {
+                const savePriority = priority;
+                priority |= newPriority;
+                inferToMultipleTypes(source, targets, targetFlags);
+                priority = savePriority;
+            }
+
             function invokeOnce(source: Type, target: Type, action: (source: Type, target: Type) => void) {
                 const key = source.id + "," + target.id;
                 const status = visited && visited.get(key);
@@ -22694,10 +22701,14 @@ namespace ts {
             }
 
             function inferFromContravariantTypes(source: Type, target: Type) {
+                contravariant = !contravariant;
+                inferFromTypes(source, target);
+                contravariant = !contravariant;
+            }
+
+            function inferFromContravariantTypesIfStrictFunctionTypes(source: Type, target: Type) {
                 if (strictFunctionTypes || priority & InferencePriority.AlwaysStrict) {
-                    contravariant = !contravariant;
-                    inferFromTypes(source, target);
-                    contravariant = !contravariant;
+                    inferFromContravariantTypes(source, target);
                 }
                 else {
                     inferFromTypes(source, target);
@@ -22860,11 +22871,8 @@ namespace ts {
                     inferFromTypes(getFalseTypeFromConditionalType(source as ConditionalType), getFalseTypeFromConditionalType(target));
                 }
                 else {
-                    const savePriority = priority;
-                    priority |= contravariant ? InferencePriority.ContravariantConditional : 0;
                     const targetTypes = [getTrueTypeFromConditionalType(target), getFalseTypeFromConditionalType(target)];
-                    inferToMultipleTypes(source, targetTypes, target.flags);
-                    priority = savePriority;
+                    inferToMultipleTypesWithPriority(source, targetTypes, target.flags, contravariant ? InferencePriority.ContravariantConditional : 0);
                 }
             }
 
@@ -23059,7 +23067,7 @@ namespace ts {
                 const kind = target.declaration ? target.declaration.kind : SyntaxKind.Unknown;
                 // Once we descend into a bivariant signature we remain bivariant for all nested inferences
                 bivariant = bivariant || kind === SyntaxKind.MethodDeclaration || kind === SyntaxKind.MethodSignature || kind === SyntaxKind.Constructor;
-                applyToParameterTypes(source, target, inferFromContravariantTypes);
+                applyToParameterTypes(source, target, inferFromContravariantTypesIfStrictFunctionTypes);
                 bivariant = saveBivariant;
                 applyToReturnTypes(source, target, inferFromTypes);
             }