Leicester City were given a reality check when the unlikely leaders lost 1-0 at Liverpool on Saturday.
Christian Benteke’s second-half goal sealed the points at Anfield as Leicester were handed their first league defeat since September, and only their second of the season.
Manchester City, in third place, crushed lowly Sunderland 4-1 but suffered a blow when captain Vincent Kompany limped off with a calf injury, having come on as a substitute following an eight-match absence.
Tottenham Hotspur consolidated fourth spot as Harry Kane netted twice in a 3-0 home victory over Norwich City to take his league tally for the calendar year to 27, a club record.
Leicester, who failed to score for the first time this season, have 38 points from 18 matches with Arsenal on 36, Manchester City 35 and Tottenham 32.
Leicester topped the table at Christmas, a year after being rooted to the bottom, but they were not at their best against eighth-placed Liverpool who had gone four matches without a win.
Benteke struck in the 63rd minute, steering in Roberto Firmino’s pull-back.
“We started too late to play our football,” said Leicester manager Claudio Ranieri. “Now we have to restart.”
Crystal Palace drew 0-0 at Bournemouth, moving above Manchester United into fifth spot.
Bottom club Aston Villa drew 1-1 at home to West Ham United thanks to Jordan Ayew’s penalty, leaving manager Remi Garde still awaiting a first win since taking over from Tim Sherwood.
Managerless Swansea City won for the first time since October, Ki Sung-yeung scoring the only goal against visiting West Bromwich Albion.
Newcastle dropped into the bottom three, behind Norwich on goal difference, after losing 1-0 to Everton following a last-gasp Tom Cleverley winner.
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