Peter Odemwingie put the visitors ahead after 34 minutes before Wolves striker Steven Fletcher equalised against the run of play on the stroke of half-time.
But Hodgson’s side responded from the setback, as Jonas Olsson restored Albion’s lead, before further goals from Odemwingie and a Keith Andrews strike completed the rout.
“Its very significant victory,” Hodgson told the BBC. “We’ve got a much-improved goal difference as well, so the eight points is almost nine points if you take that into consideration.
“We’ve got the quality at this club to look upwards. Last year we finished 11th with a tremendous flourish towards the end of the season. Let’s hope we can have a good end to this season as well. It would be nice to finish in that group of teams between eighth and 12th position.”
Mick McCarthy’s side looked set to survive a first-half onslaught from the visitors, but Odemwingie squeezed his shot past a cluster of Wolves defenders to give West Brom a 34th-minute lead.
Wolves responded as Fletcher combined with Sylvan Ebanks-Blake, and fired past Ben Foster to restore parity just before half-time.
However, Hodgson’s side soon converted their dominance into goals, and when Wolves failed to clear James Morrison’s corner, Olsson was on hand to edge the visitors ahead once more.
Odemwingie extended West Brom’s lead in the 77th minute, when he was first to react from Liam Ridgwell’s knock down after Wolves struggled to cope with another Morrison corner.
And Andrews made it 4-1 with a deflected shot after 85 minutes, before Odemwingie completed his hat-trick from a Morrison cross three minutes later.
“We got back into the game after having been outplayed in the first half,” said Wolves boss McCarthy. “I thought we started the second half really well.
“But we failed to deal with two corner kicks and we end up 3-1 down, and the saddest part is I thought we capitulated which I’ve never seen before.
“We were beaten by the better side in the end, a really poor performance, apologies to the fans for that.”
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