File photo of Pep Guardiola. Photograph:( Reuters )
With their loss and Liverpool's 4-0 victory Saturday over Bournemouth, the Citizens (41 points) have dropped to second in the EPL standings and the Reds (42 points) are now in first.
Manchester City lost to Chelsea 2-0 and have fallen out of first place in the Premier League in Matchday 16 action.
City lacked the cutting edge of the injured Sergio Aguero, they also missed Kevin De Bruyne and Benjamin Mendy.
Despite dominating the first half, City failed to profit with Raheem Sterling and Leroy Sane missed big chances.
While interacting with media after the match, Manchester City boss Pep Guardiola said, "I would prefer to be with Sergio Aguero, with Kevin De Bruyne, with Benjamin Mendy, with everybody."
He also added, "But those guys were incredible, they did an incredible performance today."
Pep took pride in City's performance and urged his side to usurp Jurgen Klopp's men, who took a one-point lead in the title race with a 4-0 win at Bournemouth earlier on Saturday.
"I said that is not going to happen. We are not here to be invincible, we are here to be champions," said Guardiola.
"We are calm, we move forward, it is part of the competition. There is no sport in the world: tennis; basketball; golf that one team win always. When people are saying that they are selling an illusion.
"It's part of the competition. You can lose, but it is how you lose."
And Guardiola warned that City's dreams of winning the Champions League for the first time this season could end in a similar fashion if they don't learn to kill games against the toughest opposition when they are on top.
"That is the Champions League level. People say Man City are favourites for the Champions League. That is what is going to happen in the future on the biggest stages, but the way we played today is absolutely incredible."
With their loss and Liverpool's 4-0 victory Saturday over Bournemouth, the Citizens (41 points) have dropped to second in the English-league standings and the Reds (42 points) are now in first.
Chelsea is in third with 34 points, just ahead of red-hot crosstown rival Arsenal based on goal differential.