A last-gasp header from Aguero then nearly silenced the home faithful, before the final whistle arrived to allow Liverpool to celebrate a famous victory.
England worldwide Alex Oxlade-Chamberlain opened the scoring with less than 10 minutes played to kick-start a fluent Liverpool display and Roberto Firmino, Sadio Mane and Mohamed Salah struck in quick succession after the interval.
Reds midfielder Alex Oxlade-Chamberlain and City winger Leroy Sane traded well-taken first-half goals before the Premier League leaders collapsed under the weight of a relentless Liverpool attack and their own defensive profligacy.
"It is our first defeat". Sometimes the worse thing is when people say from one month ago that it is over.
Hector Bellerin opened the scoring in the 52nd for Arsenal, which is in sixth place and has dropped five points off the Champions League qualification positions. Both teams tried to play football, defended really well without a lot of hard fouls, a few tactical ones, especially from City in a period when we were really on track.
"After that we lost a little bit of our control".
Next Round Of Snow Monday Night
With that said, a band of snow breaks out for parts of central and western Kentucky before sweeping eastward into Monday evening. We're tracking wind chills between -15° and -25° as you head out the door Tuesday morning.
Although City's lead at the top can be cut to 12 points if second placed Manchester United beat Stoke on Monday, they remain firm favourites for the title.
Just past the half-hour mark City had to bring on Danilo for the injured Fabian Delph, with Karius then having to field an effort from distance from Aguero.
"You can have a look at this game in different ways", he said.
"It's never good news to lose, but when you lose it's important not to lose again".
"It's good to know for us that we can do it".
Man City's dream of being unbeaten in the Premier League so far this season came to a resounding end at the hands of Liverpool as the electric Anfield encounter stood 4-3 at fulltime. He said earlier on in the week that he was heartbroken that Coutinho had gone. That is a very important statement, absolutely. I can see them being able to do that more now, so they don't have to be dominating and playing in the opposition's half to win. "Now we have to be sure to win the next one and be fighting to win the Premier League".