McCarthy’s side extended their lead at the top of the Championship to six points with the victory against their promotion rivals.
The star of the show for Wolves was top scorer Michael Kightly who struck either side of half-time to seal his side’s seventh home win of the season.
“That was maybe as good a performance as we’ve had because we kept a clean sheet,” said the former Ireland manager.
“We took the game to them. I think Burnley tried to be solid and we had to be patient at times. It was a lovely result to get.”
Birmingham lost ground on Wolves after they could only manage a 1-1 draw with Nottingham Forest at the City Ground on Saturday.
Forest found themselves behind on 13 minutes when James McFadden tapped home from close range after a Liam Ridgewell free-kick. Forest battled back to earn a deserved point through James Perch who struck after a Wes Morgan flick-on seven minutes into the second half.
“It was a very poor performance after we scored the goal,” said Blues manager Alex McLeish.
QPR caretaker manager Gareth Ainsworth led his side to a 1-0 victory over Cardiff in an ill-tempered match at Loftus Road.
Gavin Mahon scored as the visitors ended the match with nine men after Miguel Comminges and Darren Purse both saw red.
Cardiff boss Dave Jones was left fuming with referee Lee Probert. “They talk about respect but how much respect for the game did the ref have?” said Jones. “Purse was never a sending-off and Miguel talked to the linesman and got sent off for it. If referees make decisions like that all season, it will be crazy.”
James Beattie bagged a brace as Sheffield United beat Barnsley 2-1 in the South Yorkshire derby at Oakwell.
Leon Clarke gave Sheffield Wednesday a 1-0 win over rock-bottom Doncaster in the other South Yorkshire clash of the day at Hillsborough.
Emile Mpenza’s late goal denied under-fire Charlton boss Alan Pardew a first win in six as they drew 2-2 with Plymouth at Home Park.
Neil Mellor struck late to grab a point for Preston as they drew 2-2 with Norwich at Carrow Road. Goals from Clint Hill and Ben Watson gave Crystal Palace a 2-0 win over Coventry at the Ricoh Arena while David Norris scored the only goal of the game at Bloomfield Road where Ipswich beat Blackpool 1-0.
Bristol City beat Southampton 1-0 at St Mary’s to increase the hosts’ relegation worries.