After an excellent first half of the season, Roberto Mancini's men confirmed their place at the top of the tree at Christmas after Wednesday's 3-0 victory over Stoke City at the Etihad Stadium.
Having dropped only seven points all season, and losing just once in their opening 17 league games in 2011-12, the free-scoring Citizens have also netted a mightily impressive 53 goals this campaign.
Yet despite their best efforts, City remain only two points clear of local rivals Manchester United, who are hot on their heels in the race for the country's most coveted trophy, and Barry has warned his teammates they can't afford to ease up.
"At the moment, things are going really well," said the 30-year-old midfielder. "We have set a fast pace in the Premier League, but we are still only two points clear at the top. That shows us that there are still other good teams around.
"All the time we are top, we know it is in our own hands and we will keep trying to win games."
Barry has been an influential part of City's blistering start to the season, having cemented his place in the middle of the park alongside Yaya Toure.
"I feel really good at the moment, really fit," he added. "It's good to get a good run in the team because the players we have in the squad, it is sometimes hard to get a constant run.
"But when you are playing regularly that obviously helps you. I am really enjoying my football at the moment."