Sergio Aguero, Yaya Toure, Edin Dzeko, Stevan Jovetic and Vincent Kompany all scored in the victory that vaulted Manuel Pellegrini's men ahead of Arsenal in the table.
City have now scored five on eight occasions this season and their overall tally is up to 115 - but more importantly they now hold a one-point lead at the top.
Chelsea are three behind the new leaders after being held to a frustrating goalless draw at home to West Ham and Sky Bet now make Jose Mourinho's men 11/4 for the title.
Arsenal, who drew 2-2 at Southampton on Tuesday night, are 5/1 while Liverpool are regarded the only other realistic challengers at 14/1.
Spurs' odds to finish in the top four have drifted out to 13/5 after their unbeaten Premier League run under Tim Sherwood came to an end.
At the other end of the table, Sunderland are now 13/8 for relegation after a morale-boosting 1-0 victory over Stoke, who have been cut to 4/1.
Aston Villa are out to 14/1 following a thrilling 4-3 win over West Brom which means the Baggies have been trimmed to 5/1 to go down.