Birmingham 1 West Brom 0 - Report
They are eight points outside the play-offs with seven games still to play.
But any talk of Albion gatecrashing the top six can now stop following this dreadful performance at St Andrew's.
For the first time in 15 years, Blues battled their way to victory in the derby with a second-half Lyle Taylor penalty winning it for Lee Bowyer's side.
But it's the manner of the defeat that will really rankle with Steve Bruce and the Albion fans who made the short trip to the Second City.
Bereft of any imagination, creativity or quality in the final third, Albion created nothing from open play over the course of the 90 minutes - with the team not managing a single shot on target.
They had one or two half-chances from set-plays - with Darnell Furlong's long throws their best route to goal.
They also should have had a penalty in the opening few minutes when Marc Roberts handled a Furlong throw - which referee Dean Whitestone inexplicably missed.
But those moments aside, this was a woeful performance against a Blues side destined to finish in the bottom half this season.
And the truth is if Albion can't muster a half-decent performance against a team like that - there is absolutely no hope of them making a late charge of the play-offs.
REPORT
Albion headed to St Andrew's unbeaten in their last four - with Bruce having stuck with the same starting XI for all of those games.
So it was no surprise to see the boss keep faith with that team once again with the Baggies needing a win to keep alive any faint hopes of finishing inside the top six.
Lining up in a 3-5-2 formation, Taylor Gardner-Hickman - fresh from making his debut for England under-20 - lined up in central midfield alongside Jake Livermore and Alex Mowatt.
Darnell Furlong and Conor Townsend continued at wing-back with Karlan Grant partnered by Callum Robinson up front.
Blues lined in a 3-4-1-2 system that saw Manchester United loanee Tahith Chong operate in the number 10 role. Lyle Taylor and Scott Hogan were the front two.
In what was a frantic start, Albion really should have been awarded a penalty in just the fourth minute.
Furlong sent a long throw into the box which - with his arm above his head - Roberts effectively punched away.
It was a clear spot-kick. And yet somehow, referee Dean Whitestone missed it - with the official instead giving a free-kick the other way.
That moment aside, the opening half-hour proved largely uneventful with both teams often going long to no avail on what was a poor St Andrew's pitch.
With next to no quality on the field, referee Whitehouse again became the talking point when Hogan caught Kyle Bartley in the face with an elbow.
The striker was given a stern talking-to by the official who had clearly spotted something.
But it wasn't enough for Whitestone to produce a card - a card which Bartley thought should have been red.
The only moment of quality in the half followed just a few moments later.
Taylor played a wonderful cross-field ball to pick out Chong at the back post whose first touch got him into a shooting position.
But Semi Ajayi - who had been Albion's best player - did really well to get back and make a crucial block.
It was Blues who created the first real chance following the re-start with Juninho Bacuna hitting a low drive from 25-yards that was well claimed by Sam Johnstone.
But Bowyer's side were then dealt a major blow when the lively Chong appeared to tweak his hamstring and had to be replaced by Taylor Richards.
Bruce made his first change on the hour with Grady Diangana replacing Gardner-Hickman in a move that saw Robinson drop into the number 10 role.
It was Blues, though, who took the lead in the 67th minute when - to add insult to injury - they were awarded a penalty for handball.
To be fair to Whitestone, he got the call right with Townsend inexplicably raising his hand to block a Hernandez cross despite there being no other danger.
And Taylor made no mistake from the spot with the striker sending Johnstone the wrong way.
Albion had been woeful in the final third from practically the first minute with no spark or imagination to any of their attacking play.
And that continued even when they were behind with set-pieces proving to be their only route to goal.
Matt Clarke came close to connecting with a corner.
Substitute Andy Carroll then really should have scored when he headed wide following a Furlong long-throw.
Overall, though, Albion did nowhere near enough as an attacking force to warrant something from the game on what was a dreadful afternoon for Bruce and his players.
TEAMS
Birmingham (3-4-1-2): Etheridge, Pederson, Gordon, Roberts, Colin, Gardner, Bacuna (Sunjic 85), Hernandez, Chong (Richards 56), Taylor (Jutkiewicz 91), Hogan.
Subs not sued: Trueman, Woods, Graham, Richards.
Albion (3-5-2): Johnstone, Ajayi, Bartley, Clarke, Furlong, Livermore, Mowatt, Gardner-Hickman (Diangana 60), Townsend (Reach 76), Robinson, Grant (Carroll 68).
Subs not used: Button, O'Shea, Kipre, Molumby.