Third loss in a row for the Reds at home.
Jürgen Klopp's men were no match for the Skyblues (1-4).
A result that allows the Citizens to take five points ahead of neighbor United with two games less.
A boulevard seems to open towards a third title in four years for them.
Liverpool concedes a defeat which confirms the hopes of a second title in two seasons, but which keeps the residents of Anfield away from the podium.
They are in fourth place three points behind Leicester.
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Premier League standings