A difficult run of form for the defending champions continued as goals from Cody Gakpo and Mo Salah gave the early league leaders the victory.
Liverpool started on the front foot and took the lead when Salah curled the ball in from the right for Gakpo to bundle home at the far post.
City grew into the game after that and were perhaps the better team either side of the break, despite failing to significantly test Caoimhin Kelleher.
That hope was quashed when Luis Diaz was brought down by Stefan Ortega Moreno after a mix up at the back and Salah duly converted the resulting spot kick.
It signalled another difficult afternoon for City who will be looking to get back to our best as soon as possible.
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