diff --git a/packages/react-hooks/src/useInflation.ts b/packages/react-hooks/src/useInflation.ts
index 8bc9ec286935..db23c24311ba 100644
--- a/packages/react-hooks/src/useInflation.ts
+++ b/packages/react-hooks/src/useInflation.ts
@@ -2,13 +2,13 @@
 // SPDX-License-Identifier: Apache-2.0
 
 import type { ApiPromise } from '@polkadot/api';
-import type { BN } from '@polkadot/util';
+import type { ParaId } from '@polkadot/types/interfaces';
 import type { Inflation } from './types';
 
 import { useEffect, useState } from 'react';
 
 import { getInflationParams } from '@polkadot/apps-config';
-import { BN_MILLION, BN_ZERO } from '@polkadot/util';
+import { BN, BN_MILLION, BN_ZERO } from '@polkadot/util';
 
 import { createNamedHook } from './createNamedHook';
 import { useApi } from './useApi';
@@ -16,14 +16,14 @@ import { useCall } from './useCall';
 
 const EMPTY: Inflation = { idealInterest: 0, idealStake: 0, inflation: 0, stakedFraction: 0, stakedReturn: 0 };
 
-function calcInflation (api: ApiPromise, totalStaked: BN, totalIssuance: BN, numAuctions: BN): Inflation {
+function calcInflation (api: ApiPromise, totalStaked: BN, totalIssuance: BN, numParas: BN): Inflation {
   const { auctionAdjust, auctionMax, falloff, maxInflation, minInflation, stakeTarget } = getInflationParams(api);
   const stakedFraction = totalStaked.isZero() || totalIssuance.isZero()
     ? 0
     : totalStaked.mul(BN_MILLION).div(totalIssuance).toNumber() / BN_MILLION.toNumber();
   // Ideal is less based on the actual auctions, see
   // https://github.com/paritytech/polkadot/blob/816cb64ea16102c6c79f6be2a917d832d98df757/runtime/kusama/src/lib.rs#L531
-  const idealStake = stakeTarget - (Math.min(auctionMax, numAuctions.toNumber()) * auctionAdjust);
+  const idealStake = stakeTarget - (Math.min(auctionMax, numParas.toNumber()) * auctionAdjust);
   const idealInterest = maxInflation / idealStake;
   // inflation calculations, see
   // https://github.com/paritytech/substrate/blob/0ba251c9388452c879bfcca425ada66f1f9bc802/frame/staking/reward-fn/src/lib.rs#L28-L54
@@ -47,18 +47,22 @@ function calcInflation (api: ApiPromise, totalStaked: BN, totalIssuance: BN, num
 function useInflationImpl (totalStaked?: BN): Inflation {
   const { api } = useApi();
   const totalIssuance = useCall<BN>(api.query.balances?.totalIssuance);
-  const auctionCounter = useCall<BN>(api.query.auctions?.auctionCounter);
+  const paraIds = useCall<ParaId[]>(api.query.paras?.parachains);
   const [state, setState] = useState<Inflation>(EMPTY);
 
   useEffect((): void => {
-    const numAuctions = api.query.auctions
-      ? auctionCounter
+    // Current generation uses the number of public paras (previously auction counter),
+    // i.e. all those that are non-common and non-system chains as indicate by >= 2000
+    // as the paraId are counted
+    // https://github.com/paritytech/polkadot/blob/3cf644abad63c4a177f0697683b72a64c4706852/runtime/kusama/src/lib.rs#L521-L546
+    const numParas = api.query.paras
+      ? paraIds && new BN(paraIds.filter((id) => id.gten(2_000)).length)
       : BN_ZERO;
 
-    numAuctions && totalIssuance && totalStaked && setState(
-      calcInflation(api, totalStaked, totalIssuance, numAuctions)
+    numParas && totalIssuance && totalStaked && setState(
+      calcInflation(api, totalStaked, totalIssuance, numParas)
     );
-  }, [api, auctionCounter, totalIssuance, totalStaked]);
+  }, [api, paraIds, totalIssuance, totalStaked]);
 
   return state;
 }