Manchester City’s unbeaten Premier League record was ended at Molineux when Hwang Hee-chan scored a second-half winner to give Wolves a shock victory over the champions.
City had won their first six games in their quest to become the first team in English history to win four consecutive Premier League titles.
Wolves had only four points from their first six games, but Hwang Hee-chan’s winner at Molineux stunned the treble winners.
On the eve of the game, Guardiola dismissed talk of City cruising to victory, saying that those expecting a comfortable afternoon were outsiders, not his players.
“You have to ask other people what they think about that (complacency),” said Guardiola.
“When you win four Carabao (League) Cups in a row and the Premier League four years in five and a treble, it is not complacency. Sometimes the other players can do better than you and beat you.”
The absence of suspended Rodri was felt by the visitors, as Wolves were a constant threat on the counter-attack.
Despite the absence of the Spaniard, Guardiola chose Mateo Kovacic to start in the holding midfield role.
The Croatian was partly to blame for the first goal, but Guardiola refused to blame Kovacic or the fact that he was missing Rodri, who was sent off against Nottingham Forest last weekend.
“Mateo is an exceptional player and it was the first time he played in that position,” added Guardiola. “When we win and lose we do it together. Today we were not at our best.”
After a difficult start to the season, victory was sweet for Wolves manager Gary O’Neil.
Wolves move four points clear of the relegation zone with their second win of the season.
“Beating the best team in the world, and possibly ever, is a massive result for us,” said O’Neil.
“Beating Manchester City with where they are, and off where we were, and what people were saying about it. To answer it with that was pretty pleasing.”
Guardiola was forced to watch from the stands after receiving three yellow cards for his behaviour on the sidelines in the first few weeks of the season.
City’s start was unsettling for their manager, as Pedro Neto burst past Nathan Ake and his low cross was deflected into his own net by his Portuguese compatriot Ruben Dias.
Guardiola responded by replacing Oscar Bobb with Matheus Nunes on his return to Molineux at halftime.
Julian Alvarez brilliantly found the top corner from a free kick won by the 20-year-old.
City’s momentum, however, was quickly halted when Hwang scored his fifth goal of the season.
Hwang’s first attempt was blocked by Dias, but the Korean capitalised on his second chance when Matheus Cunha redirected the loose ball into his path.
Only Erling Haaland has scored more goals in the Premier League this season than Hwang, but the Norwegian was kept quiet as City struggled to break through the Wolves defence.
The treble winners’ chances fell to the wrong men, as Phillips curled wide and Kyle Walker shot straight at Jose Sa.
If Liverpool wins at Tottenham, City could lose first place by the end of Saturday.
It also increases the pressure on City’s visit to Arsenal next weekend, with the Gunners now only one point behind their title rivals.