Pulis believes that the amount of money that the Reds have spent in recent years means that Brendan Rodgers's team are simply reaching expectations.
He told reporters: "I think there has been a lot of investment in Liverpool. I think people forget. When Kenny [Dalglish] was there, they spent over £100m. I think Brendan has spent over £100m, they are paying players in excess of hundreds of thousands of pounds a week.
"I think the biggest bonus for Liverpool has been the fact that they have had no cup competitions or Europe to worry about so they could focus from week to week so that certainly helps you.
"Is it a surprise they are title contenders? No, not when you look at Daniel Sturridge and the quality they have got up front. They will score goals."
Palace take on Liverpool on Monday.