The reigning champions went into the game in rampant form have responded positively to their 2-1 defeat at Leicester last month with four successive wins in all competitions, while scoring 18 goals in their first three games of 2019.
However, Wolves arrived at the Etihad Stadium on the back of three games unbeaten on the road, while they enjoyed an impressive 3-1 win at third-placed Tottenham in December.
But City got their noses in front early through Gabriel Jesus, before Wolves were rocked by the sending off of Wily Boly for violent conduct just before the 20-minute mark.
The result was never in doubt from that moment and City went two-up before half-time with Jesus converting a penalty, before a Conor Coady own goal put the icing on the cake 12 minutes from time.
City remain in second spot on 53 points, five clear of Spurs, while Wolves are 11th on 29 points.
City boasted two changes from their last Premier League outing against Liverpool with Kyle Walker and Jesus in for the injured Vincent Kompany and Sergio Aguero respectively.
Nuno Espirito Santo made three changes to his starting line-up since Wolves' last Premier League match at home to Crystal Palace with Ruben Neves, Diogo Jota and Leander Dendoncker starting in place of Romain Saiss, Helder Costa and Ivan Cavaleiro respectively.
Wolves appeared to be settling into the game when City snatched the opening goal out of nothing in the 10th minute.
Aymeric Laporte picked out the run of Leroy Sane down the left and the German put a tempting low cross towards the far post which Jesus gratefully converted.
City pressed for a second and David Silva tried his luck from 25 yards on 16 minutes, but Rui Patricio tipped the effort over his crossbar.
Any hopes Wolves had of getting back into the contest were virtually wiped out on 19 minutes when they were reduced to ten men after Boly caught Bernardo Silva with a nasty challenge which referee Craig Pawson deemed deserved a straight red card.
City dominated possession with the extra man, but it was Wolves who almost carved out an equaliser in the 36th minute when Jonny collected a pass from Raul Jimenez only to then fail to pick out Jota with his ball across the middle of the area.
The hosts responded with Raheem Sterling rolling an inviting pass into the path of Fernandinho from the right, but the Brazilian’s deflected effort flew just wide.
However, City were awarded a penalty soon after when Ryan Bennett was guilty of a clumsy foul on Sterling inside the area and Jesus stepped up to send Patricio the wrong way from the spot on 39 minutes.
Sterling should have made it three just before the break when he got between Dendoncker and Coady to meet a Danilo cross from the left, but could only guide his header straight at Patricio.
City continued to dominate after the interval with their extra man advantage and Sane should have done better on 50 minutes when Bernardo Silva took two Wolves players out the game and played him in, but he made a complete hash of his effort with just Patricio to beat.
Fernandinho and Danilo both tested Patricio with efforts from distance, before substitute Kevin De Bruyne flashed a shot just wide of the far post on 66 minutes.
Three minutes later, Sane tried to pick out the run of Sterling down the right side of the area, but Patricio read the situation and made a brave stop at the feet of the City man.
Patricio was called into action again in the 77th minute when De Bruyne hit a snapshot towards the bottom corner at his near post, but the Portuguese custodian pushed the effort wide of his goal.
It was 3-0 from the subsequent corner as the ball was played out to De Bruyne on the left of the box and his curling cross drifted into the far corner of the net via a deflection off Coady’s leg.
Sterling set up Ilkay Gundogan to try and make it four in stoppage time but his cheeky backheel went straight into the hands of Patricio.