Goals from Fabinho, Mohamed Salah and Sadio Mane gave the reigning champions no chance with Bernardo Silva's second-half goal a mere consolation at a raucous Anfield.
Fabinho opened the scoring with a fabulous strike from range before Salah doubled the lead after a lightning fast counter-attack.
City threatened in spirts but their race was run when Mane headed home a Jordan Henderson cross just after half-time. Silva grabbed one back late on but it was to no avail.
The result leaves Jurgen Klopp’s Reds eight points clear of Leicester City in the table with City down in fourth.
Liverpool vs Manchester City ratings
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