Liverpool slipped from first to fourth in the Premier League after losing 2-1 at Manchester City on Thursday, leaving Arsenal in first place following a frantic Boxing Day programme.
.
Brendan Rodgers's Liverpool started the day in first place and they made an impressive start at the Etihad Stadium, with Philippe Coutinho giving the visitors a 24th-minute lead after a neat team move.
.
However, City captain Vincent Kompany headed home an equaliser seven minutes later and Alvaro Negredo put the hosts in front on the stroke of halftime with a tame shot that Liverpool goalkeeper Simon Mignolet could only palm into the net.
.
City, who have now won all nine of their home games this season, climb to second place, a point behind Arsenal, while Liverpool, for whom Raheem Sterling spurned a fine second-half chance, are three points off the pace.
.
Earlier, Theo Walcott had scored twice as Arsenal came from behind to win 3-1 against West Ham United at Upton Park.
.
Arsenal spurned several first-half chances and they were punished early in the second period when Carlton Cole put the hosts in front after Wojciech Szczesny spilled a shot from Kevin Nolan.
.
However, Walcott struck twice in three minutes to turn the game around, before Lukas Podolski crowned his comeback from a hamstring injury with a low strike in the 79th minute.
.
"We couldn't take our chances in the first half and we responded very well in the second half, in the end winning the game in a convincing way," said Arsenal manager Arsene Wenger.
.
"I am proud of the character of this team because they are always focused and try to do well."
.
Chelsea also leapfrogged Liverpool, moving up to third place by beating Swansea City 1-0.
.
Belgian winger Eden Hazard scored the game's only goal in the 29th minute at Stamford Bridge, cutting in from the left in familiar fashion before letting fly with a low drive that squeezed beneath Gerhard Tremmel.
.
"With the three points and clean sheet, I am satisfied," said Chelsea manager Jose Mourinho.
.
"But we had so many chances that you have to score at least once and create a more comfortable situation for yourselves."
.
Everton's hopes of making further ground on the Champions League contenders were thwarted, however, as they crashed to a 1-0 defeat at home to bottom club Sunderland.
.
Ki Sung-yueng scored the game's only goal from the penalty spot in the 25th minute, after Everton goalkeeper Tim Howard was sent off for a foul on the South Korea international.
.
It was Sunderland's first away win since April and left Gus Poyet's men three points from safety.
Arsenal has done well in the league so far but now it is a very daicy me for them at the top of the league.