Mahrez hoofed the ball to Vardy far down the pitch, where Vardy took a first-time volley that soared over the head of Simon Mingolet.
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Liverpool were well beaten, with boss Jurgen Klopp blaming a congested fixture schedule for a lack of intensity from his players.
Vardy opened the scoring in the victory at the King Power Stadium, latching on to a Riyad Mahrez pass and letting fly from distance, lobbing Mignolet in the process.
Leicester still top the Barclays Premier League with their stunning season showing no signs of ending in anti-climax.
Vardy’s play is one of the main reasons Leicester City has shocked the soccer world and jumped to the top of the Primer League table.
Vardy is in talks to extend his Leicester deal until 2019 and after last night’s win reiterated his desire to stay: “It’s nothing people don’t know”.
Jamie Vardy again, playing before England manager, Roy Hodgson, reacted well to convert from a deflection after Shinji Okazaki’s shot was blocked.
Emre Can and Alberto Moreno went close for a toothless Liverpool, leaving Klopp to reflect that the finishing of Vardy – who took his league tally to 18 for the season with his 71st-minute second goal – was in stark contrast to that of his side.
Man City were under the cosh for long periods at Sunderland, but hung on for Pellegrini’s 65th win in 100 Premier League matches in charge – a record bettered only by former Chelsea coach Jose Mourinho (73).
“The execution, I can’t tell you how good that skill is”. Jamie Vardy is back scoring goals so I fancy Leicester to win 2-1.
“We are free of pressure”, Leicester manager Claudio Ranieri said.
The exciting game got the goal it deserved when Vardy scored an English goal scorer’s goal that would make Alan Shearer proud.
If Klopp and his players thought they had a hard January in terms of fixture congestion, February will offer much the same.
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“I’ve got no problems and, as each game comes, we’re going to get better and stronger and hopefully I’ll get the season out with no more niggles”, he said, ahead of Leicester’s crucial trip to second-placed Manchester City on Saturday.
