Liverpool scored a goal in each half as City's winless run was extended at Anfield.
The Blues fell behind on 12 minutes to a Cody Gapko goal and withstood further pressure from the home side, but dug in and went into break trailing by just the one goal.
A much more cohesive second-display saw City grow into the game, but the failure to create any clearcut opportunities was eventually punished by a Mo Salah penalty on 78 minutes.
What happened...
It was always going to be a difficult afternoon against a Liverpool side who have been in imperious form this season.
The home side started as they meant to go on, relentlessly attacking the Kop in the opening minutes.
Virgil van Dijk saw a header hit the inside of the post on 12 minutes as the Blues rode their luck – but seconds later, Liverpool were ahead as Mo Salah picked out Cody Gapko’s back post run, and the Dutch winger had the simplest of tasks to make it 1-0.
Van Dijk somehow powered a header wide from a corner not long after with City on the ropes and clinging on.
At that stage, it felt like a second goal could open the proverbial floodgates with the Blues’ confidence brittle at best.
Keeping in the game until at least the break was paramount if there was to be a way back into this contest.
As the half wore on, City finally began to string a few passes together and on 39 minutes, Rico Lewis had a half chance that ended with a tame shot past the left-hand post.
The half-time whistle ended with the Gapko goal separating the two teams.
City began to ask questions after the restart, with Liverpool sitting back somewhat.
But for all the good work in the first 10 minutes, Mo Salah pinched the ball off Manuel Akanji, raced clear but shot over the bar with just Ortega Moreno to beat.
That signalled a double change for the Blues with Jeremy Doku and Savinho replacing Ilkay Gundogan and Matheus Nunes.
City were starting to look threatening and beginning to pin Liverpool back.
Doku and Savinho were causing problems down either flank, but by the 70-minute mark, there still hadn’t been a clearcut chance for Guardiola‘s men.
With 12 minutes of normal time remaining, a defensive mix-up allowed Luis Diaz to pinch the ball and as Ortega Moreno advanced, the Colombian made the most of the opportunity, trailing a leg into the City keeper and winning a penalty.
Salah dispatched the spot-kick to make it 2-0 and all the hard work and momentum looked wasted.
A rare van Dijk mistake in the final minutes allowed sub Kevin De Bruyne and one-on-one with Caoimhín Kelleher - but the Liverpool keeper smothered the opportunity.
That was the Blues’ final chance to get back in the game as our winless streak stretches to seven.
Line-ups
LIVERPOOL XI: Kelleher, Alexander-Arnold (Quansah 73) Gomez, van Dijk, Robertson, Gravenberch, Mac Allister, Szoboslai, Salah (Jones 84), Diaz (Elliott 90+1), Gakpo (Nunez 73)
Subs: Jaros, Davies, Endo, Morton, Nyoni
CITY: Ortega, Walker (C), Akanji, Dias, Ake, Lewis (Grealish 78), Gundogan (Savinho 58), Nunes (Doku 57), Bernardo, Foden (De Bruyne 78), Haaland
Subs:Ederson, Carson, Gvardiol, O’Reilly, McAtee
We’ll be back
It’s unchartered territory for Pep and his players but there were signs in the second-half that the Blues aren’t a million miles away from breaking our poor run of form.
City bossed much of the second period, but that one piece of luck continues to elude our players whose confidence is understandably low.
But for a late defensive mix-up, the Blues looked to be pressing for an equaliser as the half wore on.
Our travelling fans showed their support and appreciation at the end of the game, knowing full well that one victory could restore belief and get our season back on track - now we move on to the next game against Forest this Wednesday.
Pep reaction
To follow...
What it means
City slip to fifth in the Premier League, some 11 points behind leaders Liverpool.
Arsenal, Brighton and Chelsea all moved about the Blues this weekend, though Guardiola‘s men are just two points off second spot with 13 games played.
What’s next?
City host Nottingham Forest in the Premier League this Wednesday, 4 December .
Kick-off at the Etihad is scheduled for 19:30 (UK).
Then, next Saturday, 7 December, the Blues travel to Selhurst Park to face Crystal Palace, also in the Premier League.
Kick-off is scheduled for 15:00 (UK).
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