Arsene Wenger's men came into this fixture having not lost a league game at Anfield since March 2007, but were ruthlessly exposed in a scarcely believable opening 20 minutes.
Martin Skrtel was the unlikely scorer of Liverpool's first two goals, the centre-back twice converting Steven Gerrard set-pieces, before Raheem Sterling and Daniel Sturridge found the net with Arsenal in total disarray.
A Mikel Arteta penalty reduced Arsenal's arrears with 21 minutes remaining, but provided precious little in the way of consolation.
Brendan Rodgers' men now lie just five points behind the London club, who face a stiff task to bounce back from a first defeat since they were beaten 6-3 at Manchester City on December 14 in a similarly eventful match.
An unchanged Liverpool moved ahead inside the first minute, Skrtel converting a left-wing free-kick with his knee after Gerrard's inswinging delivery appeared to brush the boot of Arteta.
Skrtel made a crucial clearance at the other end when Simon Mignolet charged from his goal, and then doubled his side's advantage in the 10th minute.
Although Arsenal belatedly checked Liverpool's momentum, the hosts retained control and pulled further clear seven minutes after the break.
Wilshere was booked for a petulant foul on Sterling that summed up Arsenal's frustration before Wenger made a triple change in the 61st minute, introducing Kieran Gibbs, Tomas Rosicky and Lukas Podolski.
Sturridge, Gerrard and Suarez were all substituted to sum up Liverpool's dominance, while Sterling spurned a chance to complete his hat-trick in the closing stages.
