Liverpool dominated Arsenal for most of the game as they looked eager to cleanse the memory of last weeks embarrassing defeat at Charlton.
But once again a poor defensive performance cost them dearly.
As Arsenal placed the emphasis on defence, El Hadji Diouf highlighted a chink in the visitors' armour with a cheeky flick pass which gave Steve Finnan a shot on goal, but it went straight into Jens Lehmann's hands.
Liverpool's aggressive play was rewarded when John Arne Riise's floated cross found Harry Kewell's capable feet and he fired his shot past the floundering Lehmann to put them ahead in the 13th minute.
Arsenal struggled to lift a lacklustre performance and Kewell nearly added his second but the Australian international put his shot high from 12 yards.
But Liverpool's over-confidence was punished in the 32nd minute when they were caught napping by a quickly-taken corner, Edu calmly putting the ball away with a soft header.
Liverpool came out at the break with all guns blazing and Diouf and Finnan combined to provide Michael Owen with a chance, but the England striker headed it over the bar.
It was the Gunners who capitalised on more shoddy defending by the home team with a well-taken goal in the 68th minute.
A poor clearance by Igor Biscan fell to Robert Pires on the edge of the area and he dribbled into space before curling a deft shot past a helpless Jerzy Dudek.
Owen was substituted for Emile Heskey on 71 minutes after picking up a bizarre injury in an over zelous turn on goal.
Liverpool continued to pile on the pressure with Heskey and Diouf combining well on the flank to give Anthony Le Tallec a shot at goal which required a solid save by Lehmann.
But Arsenal managed to hold on to their lead, earning them three points and maintaining their stranglehold at the top of the league.