Liverpool slumped to only their second defeat of the season when they were beaten 1-0 by Leicester on Tuesday night
The Reds slumped to defeat at the King Power Stadium by an injury-hit Foxes on Tuesday night.
Exactly halfway through the season, Liverpool are now six points adrift of leaders Manchester City, a gap that could grown to 12 points by the time they face fellow title challengers Chelsea on Sunday.
Speaking after the defeat, Klopp was at a loss over how his team had performed so poorly against an opposition they had eliminated from the Carabao Cup just six days earlier.
"With the situation Leicester are in with injuries and playing two days ago, they deserved the three points," said Klopp.
"I like these kind of stories, the only problem is that I don't want to be part of it on the wrong side but we were.
"These boys have mentality and I'm not in doubt about that. So often in a similar situation I have said 'wow what a football game' and again I say 'wow what a football game', just for the wrong reasons.
"Body language was not great, other things were not great. We can do better, that's the only good thing, it's easy to improve and we have to and quickly as well. We will think it through, speak it through and strike back."
Speaking to liverpoolfc.com, Klopp said of the game: "Very disappointing. I don't like the word frustrating as in German it means something a little bit different, but it hits the nail (on the head). Pretty frustrating.
"Not the game we wanted to play or could have played, but a game we saw.
"We started okay then lost the rhythm then never really got it back. They scored with their one chance at goal and we didn't use our chances, didn't create enough and didn't play well enough."