Erling Haaland opened the scoring midway through the first half before a second-half Brighton comeback turned it around.
Haaland’s goal - his 15th in all competitions this season - came after excellent work from Mateo Kovacic in midfield before the Norwegian took the ball on himself and reacted quickest when his first effort was saved.
However, the Seagulls grew into the game in the second period and eventually scored through Brazilian striker Joao Pedro and Danish midfielder Matt O’Riley.
City threw it all at Brighton in the closing stages but couldn’t force an equaliser as we were consigned to our second successive Premier League defeat.
The result came against the backdrop of six senior absences through injury in Jeremy Doku, Jack Grealish, John Stones and Ruben Dias plus the long-term absentees of Ballon d’Or winner Rodrigo and Oscar Bobb.
Pep Guardiola’s Blues remain in second spot in the Premier League table, with Liverpool leading the way.
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