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Chelsea, whose form has also been indifferent, returned to winning ways with two goals from Gianfranco Zola and a third by Jimmy Floyd Hasselbaink.
City must still be wondering how they finished the game empty-handed after dominating three quarters of the match only to be sunk by three late goals.
City had two penalty appeals turned down and saw Eyal Berkovic strike an upright in the opening ten minutes.
Kevin Keegan's side remained in control and only two brilliant saves from Cudicini early in the second half to deny Marc-Vivien Foe and Nicolas Anelka kept the game goalless.
The breakthrough came in the 69th minute when Graeme Le Saux's corner flicked off the head of defender Niclas Jensen to find the unmarked Zola and he headed home from four yards.
Le Saux was also the provider for Zola's second goal of the game and eighth of the season as he threaded a superb pass to the Italian who beat the offside trap and scored with ease.
Hasselbaink piled on the agony adding a third goal in the dying minutes.
It was cruel on City and Keegan later lamented: "People will see the 3-0 scoreline and think we were battered, but we were the better side for 70 minutes.
"The Premiership is a cruel place and when you play well you need to create chances and stick the ball in the net."