The Hoops went into the fixture in Edinburgh knowing that victory would be enough to confirm a seventh successive league title, but Hibs could have gone ahead after just two minutes when Florian Kamberi volleyed over from a corner.
Moments later, the visitors put together a counter-attack which nearly led to a goal of their own, but Hibs stopper Ofir Marciano made two excellent interventions to deny both Tom Rogic and Leigh Griffiths.
As the half progressed, Hibs began to do an effective job of nullifying Celtic in the final third, but the hosts stunned the Glasgow giants in the 24th minute when Jamie Maclaren was perfectly placed to convert Lewis Stevenson's cross at the back post.
Both sides continued to trade chances and shots on goal throughout a frantic and exhilarating first half in the Scottish capital, but the half-time whistle blew on Hibs leading the champions-elect by a single goal.
Although Celtic halved the deficit three minutes from time, Odsonne Edouard showing great composure to bear down on goal and slot the ball underneath Marciano, the hosts held on for all three points.
The victory was Hibs' first over Celtic since December 2012, and the third time that Rodgers's side have lost in the league this season, keeping their champagne on ice for the time being.
HIBERNIAN (4-4-2): Marciano; Whittaker, Ambrose, Hanlon, Stevenson; Boyle, McGeouch, McGinn, Swanson (Barker 64'); Kamberi, Maclaren (Slivka 73')
CELTIC (4-2-3-1): Gordon; Hendry, Ajer, Boyata, Tierney; Brown, Ntcham (Sinclair 46'); Forrest (Roberts 70'), Rogic, McGregor; Griffiths (Edouard 65')