Liverpool responded well through Emre Can, who struck the base of the post, while Mohamed Salah couldn’t convert follow-up.
But the Egypt international continued to pose a threat and on 15 minutes headed home a pin-point Philippe Coutinho cross to put the Reds in front.
Soon after, Jurgen Klopp’s men were 2-0 up courtesy of a stunning free kick from Coutinho. The Brazilian lifted his effort over the wall from 25 yards and found the top corner, giving Kasper Schmeichel no chance.
Shinji Okazaki had an effort disallowed with five minutes of the first period to play, but the frontman finally got his goal on the stroke of half-time, as he stabbed home on the line.
After the interval, Can nodded over at the back post and Coutinho saw a shot blocked by Wes Morgan, while at the other end, Vardy was also denied before seeing a penalty appeal turned down.
While the Merseyside outfit restored their two-goal advantage on 68 minutes through Jordan Henderson, it wouldn’t last for long.
Substitute Demarai Gray came on and provided a danger on the right flank and played a major part in City’s second. The winger had a strike saved by Mignolet, but Vardy was there to nod home the loose ball.
The England international had a golden opportunity to level from the spot on 73 minutes after being brought down by Mignolet in the area. He couldn’t beat the Liverpool stopper, though, and was thwarted from the spot.
City had the lion’s share of possession late on at King Power Stadium, with Islam Slimani heading off target, but they couldn’t find an equaliser against the Reds and were beaten for the second time on home soil this term.
Vardy heads in for the Foxes.
Fresh from netting a penalty against Huddersfield Town last time out and already on the scoresheet against the Reds, Jamie Vardy looked full of confidence as he approached the penalty spot to face Simon Mignolet.
The Belgian had done his homework, though, and while City’s No.9 got plenty behind his strike, he couldn’t find the net for the second time in the game.
If his penalty had gone in, it could have gone either way, but it wasn’t to be for the Leicester frontman.
The striker stabs over the line.
It seems at the moment that if Shinji Okazaki isn’t scoring goals, he’s giving his all to chase down the opposition defenders and midfielders – he did both against Liverpool.
Denied a goal earlier on in the game, City’s No.20 got himself on the scoresheet for the second time this week to halve the deficit on Filbert Way.
Withdrawn with just over 15 minutes to play, Okazaki received a standing ovation from the Blue Army, who applauded him for his efforts.
He has now scored four goals in six appearances in all competitions this season.
Where do we stand?
Maguire applauds the Blue Army after the defeat.
With Brighton & Hove Albion in action on Sunday, City currently sit 16th in the Premier League table with four points after six extremely challenging fixtures.
Chilwell challenges Liverpool's Salah in the air.
A second international break of the season is fast approaching, but first, the Foxes travel to Vitality Stadium on Saturday 30 September to face Bournemouth (3pm kick-off).
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