The UK pound just tumbled to a record low against the dollar. That could drive up food and gas prices for already struggling households.

The cost-of-living crisis is putting even more strain on the UK's worst households as the British pound plummets.

The pound fell to an all-time low of $1.0350 early Monday after the finance minister promised more tax cuts.

The new UK government's plan to reduce tax rates caused investors to worry that it would damage an economy already hit with inflation.

The pound's fall puts pressure on British people and businesses who are struggling to make ends meet.

Inflation can be caused by the pound's weakness. Goods from other countries are more expensive if they are priced in a stronger currency.

Businesses need to purchase foreign currency. When the pound falls against the dollar, they spend more to import the same amount of goods. Consumers pay those extra costs.

One of the UK's leading imports are fuel products such as gasoline and diesel.

According to the Office of National Statistics, the UK spent over 10 billion pounds on fuel imports last year. The pound's weakness will make these more expensive.

Analysts warn that soaring fuel import costs will be passed onto consumers. The AA said last week that the average price of petrol has gone up because of the fall in the pound.

The UK buys almost half of its food from abroad. Andrew Bailey, the governor of the Bank of England, warned in April that the pound's drop would make things like bananas, coffee, and cereals more expensive.

"Households would face a combination of more uncertain income streams, higher borrowing costs and a further erosion in their purchasing power due to greater imported inflation," said top economist Mohamed El-Erian in a Guardian comment.

"If businesses are struggling to keep afloat in the midst of an energy and cost-of-living crisis, they will be tipped into bankruptcy," the chief economic advisor to insurance giant Allianz said.

Many analysts and economists, including El-Erian, want the Bank of England to raise interest rates in order to support the UK currency.

The policymakers of the central bank are not scheduled to meet until November 3.

Mortgages and household credit bills are more expensive as a result of interest rate hikes. The Bank of England sets the pace for interest rates on loans and credit cards.

The central bank will be trying to take money out of the system while the government tries to boost it, which could cause economic uncertainty.

El-Erian said that the policy configuration would be similar to a car being driven with one foot on the brake and the other on the pedal.

Liz Truss is the new prime minister of the United Kingdom.