With a third of the season played, the Reds have effectively ended the champions' chances of retaining their crown and completing a fantastic five-peat, thanks in no small part to Salah's stellar contributions.
The 32-year-old firstly latched onto a phenomenal ball over the top from Trent Alexander-Arnold to take the ball down in the right-hand side of the box, before finding the run of Cody Gakpo to prod the Reds ahead.
Salah was then guilty of some uncharacteristic profligacy as Liverpool sought to add to their lead, firing over Stefan Ortega's crossbar in the second half when one on one with the German, who then conceded a late penalty when he wiped out Luis Diaz in the box.
Salah stepped up to the 12-yard mark and clinically found the bottom corner to rubber-stamp Liverpool's 11th win from 13 Premier League games this season, one which puts the Reds 11 points clear of City and nine points better off than Arsenal and Chelsea at the Premier League summit.
Salah draws level with Rooney in City victory
By scoring one and setting up another on Sunday, Salah has now provided at least one goal and one assist in 36 Premier League matches, the joint-most of any player in the history of the competition.
Only all-time Manchester United goalscorer Rooney has also scored and assisted in 36 different Premier League matches, and Salah will certainly be expected to surpass his English colleague before the season is done and dusted.
The 32-year-old has registered a goal and assist in five different top-flight games this term, also doing so against Aston Villa, Chelsea, Manchester United and Ipswich Town, and he is now on a six-game scoring sequence in the Premier League.
From 20 appearances in all competitions this season, Salah has been directly involved in 24 goals - 13 of his own and 11 assists - but his contract situation remains an unwelcome distraction off the field.
Salah hit the headlines again last weekend when he said that he was "more out than in" of the club, and he admitted after Sunday's win that he was going about the City game as if it would be his last against the champions.
Salah touches on contract situation after Liverpool sink City
"Honestly it's in my head. Until now this is the last City game I will play for Liverpool so I was just going to enjoy it," Salah told Sky Sports News.
However, the Egypt international suggested that he could still have a future on Merseyside, claiming that Anfield feels like "home", adding: "The atmosphere was incredible so I will enjoy every second here. Hopefully we just win the league and will see what will happen.
"It's very special. I don't take it for granted. I'm enjoying every minute here. It feels like home. It's always special feeling always scoring at Anfield and winning games.
"The fans were behind us from the first minute. I'm glad we managed to win the game, we know that City are going to come [at us]."
Liverpool now prepare to travel to Newcastle United on Wednesday evening before the final Goodison Park Merseyside derby with Everton takes place next Saturday lunchtime.