TOKYO, July 24 (Reuters) - Japanese companies are passing on rising costs from ‌the Middle East conflict at a ‌faster pace than in 2022, when the war ​in Ukraine pushed up fuel costs, the government said in an annual white paper released on Friday.

Corporate and household inflation expectations ‌are also ⁠accelerating, the white paper said, aligning with the Bank of Japan's ⁠view that inflationary pressures are becoming embedded in a country once mired in ​deflation.

"Companies' spending ​appetite remains strong ​with their investment plans ‌exceeding the historical average for two straight years," the white paper said, highlighting the economy's resilience to the conflict-induced energy shock.

The white paper, however, warned that "close ‌attention" was needed on the ​extent to which the ​Middle East ​conflict could hurt Japan's economy ‌and output gap.

The white ​paper is ​compiled by the Cabinet Office, which is overseen by Economy Minister Minoru Kiuchi, ​who ‌is seen as cautious of the BOJ's ​rate-hike plans.

(Reporting by Leika Kihara; ​Editing by Jacqueline Wong)