Martin Odegaard's second-half double proved to be the difference as Wolves were beaten at home.
After Jose Sa kept out Gabriel Martinelli's low effort 15 minutes from time, Odegaard scored from close range and then drilled in the rebound after he got the ball.
The only negative for the visitors was the early exit of Granit Xhaka, who is due to play for Switzerland in the World Cup.
The result means thatArsenal will be top on Christmas Day for the first time since 2007, and will do so with a handy advantage over Manchester City.
The Wolves are bottom as Julen Lopetegui prepares to take charge.
The former Spain, Real Madrid and Sevilla boss was introduced 15 minutes before the start of the game.
Wolves were undone by a lack of goal threat as they failed to score for the eighth time in 15 top-flight games, despite the hosts battling hard and producing some chances.
Fourteen games into the season, the team has 12 victories and 37 points.
The first league game against City was called off last month to allow the team to get up to date with their European schedule.
They also have to face an in-formNewcastle, but they have already met all of their rivals and look very much the real deal.
Mikel Arteta chose Odegaard as captain.
Given his central role, the Norwegian goes about his work in a quietly effective way, clean in his passing and astute in his positioning, which is what he does best.
He is a threat to score. His first goal was a poacher's effort as he evaded the attention of Wolves defenders despite his proximity to the home goal As the ball ran out to him, he did a superb first-touch control.
Much has been made of Erling Haaland's likely impact for City after the World Cup, given Norway's absence means he will be resting. It's the same thing for Odegaard.
Compared to previous years, the lack of games on Christmas Day makes comparisons difficult.
Since 1947, when they were top, they have gone on to win the title, which has to be the goal.
Three clubs have escaped the drop after being at the bottom of the table.
The last team to do it wasLeicester, who went on to win the title the next season.
The chairman admitted in his programme notes that he doesn't expect to start winning straight away, which is a novel approach.
It would be a big surprise if Wolves didn't have an escape clause in the contract of their new manager, if the change doesn't work out as expected.
A silk purse can't be made out of a sow's ear. Wolves didn't find the net despite Adama Traore's pace causing problems and one of his better displays.
They have only scored eight times this season, which is the worst return in the league.
Diego Costa will be back after suspension, but it is not certain if that will be enough to save Wolves.
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