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By Hideyuki Sano

TOKYO, May 14 (Reuters) - Japanese wholesale inflation rose 3.7 percent in April from a year earlier, more than expected, fuelling worries that soaring oil and raw materials prices could squeeze businesses and hurt economic growth.

The strong rise in corporate goods prices reinforced broader fears of global inflation that sent Japanese government bond yields to a seven-month high, tracking U.S. Treasuries after U.S. Fed officials expressed concerns about inflation.

Wholesale inflation dipped from the year to March, thanks to a short-lived tax cut on petrol in April, but economists said the trend was still upwards.

The strong wholesale inflation, however, did little to change views that the Bank of Japan will keep interest rates on hold for a while, as it balances rising prices with economic weakness.

"If prices keep rising, they could hurt corporate profits. This cost-push inflation is not a good trend," said Taisuke Nakamoto, economist at Dai-ichi Life Research Institute.

As Japan must import almost all of its oil and commodity needs, the soaring cost of raw materials and energy works like a tax increase, curbing economic growth.

The sharp rises in import prices also helped send the current account surplus in March down 12.3 percent from a year earlier.