Goals with the aid of Mads Pedersen and Andre Hahn put Augsburg 2-zero up and despite the fact that Robert Lewandowski claimed his 14th purpose in 12 video games, it turned into not sufficient to rescue Bayern.
The Bundesliga leaders suffered handiest their 2nd league defeat this season and their third in all competitions at the same time as Augsburg escaped the bottom 3.
Second-placed Borussia Dortmund can now trim Bayern's four-point lead after they host Stuttgart on Saturday.
Thick fog shrouded the Augsburg Arena, but the hosts have been crystal clear with their recreation plan.
Brazilian left-again Iago induced havoc on the flank as Augsburg, who had been third from backside earlier than kick-off, raced right into a deserved 2-0 lead.
Iago floated in a go to Swiss striker Andi Zeqiri, who laid the ball off to Pedersen to drill his first Bundesliga aim past Manuel Neuer after 23 minutes.
With Kimmich once more watching at domestic having only been launched from residence quarantine on Tuesday, Bayern struggle in midfield.
Augsburg doubled their lead to the pleasure of domestic fans while Kimmich's alternative Marcel Sabitzer lost ownership and Iago once more swung in a go which Hahn headed domestic on 36 minutes.
Bayern spoke back whilst Thomas Mueller deftly flicked the ball into the route of Lewandowski who drilled his shot domestic notwithstanding Augsburg goalkeeper Rafal Gikiewicz getting a glove to the ball.
With Bayern 2-1 down on the smash, Julian Nagelsmann plugged the pace at the flanks by using bringing on right-back Alphonso Davies - who Mueller nicknamed 'Bayern's Road Runner'.
