City are currently third, four points behind Liverpool and two behind Chelsea but with two games in hand.
Jose Mourinho has played down his side's chances in the title race, but Pellegrini claims that one must rise to the pressure and congratulates Arsene Wenger for talking up Arsenal's ambitions.
"I don't try to take advantage and say we don't have any pressure because we play away [against Liverpool] or they are the best team," Pellegrini told reporters.
"That's why I have so much respect for Arsene Wenger saying Arsenal can do it. Afterwards, if they can't do it, it's another problem but if you are at an important club you can't say 'We don't have pressure to win a title, the other clubs have it all'.
"It is impossible not to enjoy a fight for the title as has happened this year in the Premier League."