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The Egyptian also created another for Dominik Szoboszlai as Arne Slot’s side claimed a crucial victory at the Etihad Stadium which lifted Arne Slot’s side 11 points clear at the top of the table.
City, without the injured Erling Haaland, lacked potency and their defeat underlined their startling decline this season after winning the title for the past four seasons.
Pep Guardiola’s men remain fourth in the table, but qualification for the Champions League is now their relatively modest aim having fallen 20 points behind the Merseysiders.
Liverpool, with confidence restored after some recent hiccups, look well on course to take their crown.
Nervy performances against Everton, Wolves and Aston Villa, had raised questions over how the Merseysiders would cope with the pressure of the run-in.
Yet Arsenal’s unexpected defeat to West Ham on Saturday appeared to give them just the fillip they needed.
They responded with a strong display which blunted City’s attack although, once again, they owed a lot to Salah.
Salah’s goal took him to 30 for the season in all competitions for a fifth time in his Liverpool career and his pass for Szoboszlai meant he had scored and assisted in 11 separate league games this term.
Despite that, aside from a Szoboszlai shot which was blocked by Rico Lewis, City actually started well as they looked to at least land a blow on one of their strongest rivals of recent years.
They won a couple of early corners, Jeremy Doku looked like he could be a handful for Trent Alexander-Arnold and Phil Foden shot at Alisson Becker.
Yet it was Liverpool who seized the initiative in the 14th minute after Luis Diaz won a corner.
The set-piece was drilled low into the area by Alexis Mac Allister and flicked into the path of Salah by Szoboszlai.
The Egyptian did what he has done all season and thumped into the net, albeit via a deflection off Nathan Ake.
City had a good spell in response and Omar Marmoush thought he had levelled with a powerful strike off the post on the half-hour, but was correctly flagged offside.
That moment aside, City, for all their possession, rarely looked like troubling Alisson.
Liverpool showed their clinical side to double the lead in the 37th minute as Salah raced clear down the right and squared for Szoboszlai.
Given time and space inside the box by City’s static defence, the Hungary international simply passed the ball into the bottom corner.
Szoboszlai thought he had created a third goal early in the second half when he broke through to tee up Curtis Jones, but he was ruled offside following a VAR check.
City were energised by that reprieve and Marmoush flashed narrowly wide at the other end.
Liverpool threatened again when Diaz forced a good save from Ederson.
From then it largely became a rearguard action by Liverpool as they looked to sit back and protect their lead.
City probed but without the prolific Haaland, who failed a fitness test on his injured knee, they lacked a cutting edge.
Doku wriggled into the box numerous times but was unable to pick out team-mates and Foden was also unable to find a way through.
The visiting Liverpool fans chanted they were going to win the league and, after such a statement victory over a once-powerful opponent, it is clearly closer to becoming reality.
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