Mario Balotelli and Sergio Aguero both scored penalties and Micah Richards was also on target to condemn third-placed Newcastle to their first defeat of the season and leave City as the only unbeaten side in the league.
City have 34 points from a possible 36 this season and have piled up a staggering goal difference of 31 to lead Manchester United by five points.
The champions edged a 1-0 victory at Swansea City in the late kickoff. Javier Hernandez scored the only goal in the 11th minute in South Wales from a cross by Welshman Ryan Giggs to inflict a first home defeat on the Premier League's newcomers.
Arsenal maintained their improvement with a fifth consecutive league victory thanks to Robin van Persie's double in a 2-1 win at Norwich City, which moved the London club above Liverpool into sixth place with 22 points.
Liverpool (19) face fourth-placed Chelsea (22) on Sunday, with fifth-placed Tottenham Hotspur (22) at home to eighth-placed Aston Villa on Monday.
Bottom club Wigan Athletic ended a run of eight successive league defeats in a 3-3 home draw with fellow strugglers Blackburn Rovers, who equalised with an injury-time penalty despite playing most of the second half with 10 men.
Wigan manager Roberto Martinez labelled Blackburn's second goal "scandalous" after Rovers forward Yakubu appeared to use his hand to re-start play from a corner.
Bolton Wanderers remained in the relegation zone after a 2-1 defeat at West Bromwich Albion. Everton eased away from the bottom three courtesy of a 2-1 home defeat of Wolverhampton Wanderers, Queens Park Rangers won 3-2 at Stoke City, and Sunderland drew 0-0 with Fulham.
While the English record 194.9 million pounds ($307m) loss Man City reported on Friday called into question their route to the top of the Premier League, the truth is they look unstoppable at present.
Manager Roberto Mancini could even afford to juggle his squad, leaving seasoned internationals David Silva, Edin Dzeko and Gareth Barry on the bench but his selection dealt with Newcastle relative easily.
City's goal tally after 12 games is the best in the top flight since Tottenham Hotspur netted 44 in their first dozen top-flight games in 1963 but Mancini warned against getting carried away with the idea they will stroll to the title.
"As a team, we are strong now but we should think that the season is long, probably there will be a difficult moment and for this reason it is important now if we can score goals, if we can win games in a row, it is very important," he said.
Newcastle's miserly defence had dealt with everything City could muster and the visitors looked set to reach halftime on level terms until Ryan Taylor blocked Yaya Toure's shot with his hands and Balotelli side-footed home the resulting penalty.
On the stroke of halftime, Richards, a rare home-grown player at the world's richest club, nipped in to seize on a loose ball and double City's advantage.
Richard was involved again in the 72nd minute when he was bundled over in the area, and Aguero stroked home the resulting spot-kick past keeper Tim Krul. Dan Gosling earned a late consolation for the visitors.
Arsenal had to come from a goal down at promoted Norwich after a defensive howler from Per Mertesacker allowed Steve Morison to fire the home side ahead after 16 minutes.
Dutchman Van Persie equalised with a simple tap-in after 26 minutes and struck again just before the hour mark with a deft finish to take his league tally for the season to 13 and his calendar year total to 31.
"Robin is exceptional but we all know within the club that he's an exceptional player," manager Arsene Wenger told Sky Sports. "Sometimes, what was in the way was the fact he was injured. Since he plays, he shows just how good he is."
Wenger also played down a report in French newspaper L'Equipe that he could leave at the end of the season.
"I am completely committed to this club, it's the club of my life and I'm completely committed to my contract," Wenger, whose side have won six of their last seven league games after a woeful start to the campaign, said.
