Policymakers at the European Central Bank are trying to tame inflation and they will make another sharp increase to key interest rates.

The ECB's Governing Council says it will raise rates by 0.75 percentage points to 2 percent. This follows increases in July and September.

Preliminary data show that inflation continues in the 19 eurozone countries and last month it touched 10 percent.

Higher prices have put pressure on households and hampered corporate activities.

There are growing concerns of "stagflation" or the simultaneous rising of prices and slowing down of the economy.

The ECB President Christine Lagarde says the aim is to contain rampant inflation. She says " Our monetary policy aimed at reducing support for demand and guarding against the risk of a persistent upward shift in inflation expectations."

Lagarde adds that the ECB policy makers expect to raise interest rates further based on the evolving outlook for inflation and the economy.