Sustained cost pressures and rising output prices also keep upward pressure on Japanese inflation, a dynamic that continues to feed into the broader currency and monetary policy story. ---Earlier:Japanese manufacturing is booming on AI and chip demand, but the war-driven cost squeeze and capacity strain haven't gone away. The headline S&P Global Japan Manufacturing Purchasing Managers' Index, a composite measure of manufacturing performance where readings above 50 signal improving conditions, posted 54.5 in July, only slightly below June's 54.8. With output requirements climbing, companies raised both staffing levels and purchasing activity solidly during the month. Output prices rose sharply again as a result.