A goal either side of half-time for striker Owen Farmer ensured the hosts took home the points, with Dan Ogwuru's stoppage time effort proving a consolation at the Sir Jack Hayward Training Ground.
City started the game with most of the possession, but were unable to turn that dominance into any clear cut chances in the early stages.
Wolves soon began to grow into the game, and took advantage when Farmer opened the scoring in the 24th minute to put the hosts ahead at the break.
Ben Wilkinson's young blues continued to dominate the possession after the restart, but the chances didn't fall our way.
And the home side were able to double their lead in the 67th minute, with Farmer grabbing his second of the afternoon.
Ogwuru pulled one back in stoppage time to give City hope, but it wasn't able to spark a late comeback as Wolves held out for the three points.
HOW WE LINED UP
George Murray-Jones lined up in goal and he was protected by a backline of Rico Lewis, Issac Smith, Jadel Katongo and Tom Galvez.
Will Dickson and Matty Whittingham lined up on the flanks, supporting Liam Smith.
What it Means
The defeat sees us fall to eighth in the U18 Premier League, although we do still have a game in hand over most teams above us.
The Under-18s are in action on Saturday 18th May at 12:00pm (UK) as we take on Middlesbrough at the City Football Academy.