Eukaryotic cells control cytosolic phosphate to balance its role as essential macronutrient with its negative bioenergetic impacts. Phosphate homeostasis depends on a conserved signaling pathway including inositol pyrophosphates (PP-IPs) and SPX receptor domains. Since cells synthesize various PP-IPs and SPX domains bind them promiscuously, it is unclear whether a specific PP-IP regulates SPX domains in vivo, or whether multiple PP-IPs act as a pool. In contrast to previous models, which postulated that phosphate starvation is signaled by increased 1-IP7 production, we now show that the levels of all detectable PP-IPs of yeast, 1-IP7, 5-IP7 and 1,5-IP8, strongly decline upon phosphate starvation. Among these, specifically the decline of 1,5-IP8 triggers the transcriptional phosphate starvation response, the PHO pathway. 1,5-IP8 inactivates the cyclin-dependent kinase inhibitor Pho81 through its SPX domain. This stimulates the cyclin-dependent kinase Pho85/Pho80 to phosphorylate the transcription factor Pho4 and repress the PHO pathway. Combining our results with observations from other systems we propose a unified model where 1,5-IP8 signals cytosolic phosphate abundance to SPX proteins in fungi, plants, and mammals. Its absence triggers starvation responses.