The Reds went down 1-0 to Brendan Rodgers’ side at the King Power Stadium thanks to substitute Ademola Lookman’s second half strike.
Mohamed Salah had a penalty saved by Kasper Schmeichel in the first half and put the rebound over as Liverpool lost for the second time in the league this season.
Liverpool now trail leaders Manchester City by six points and Klopp has admitted they did not perform to their best level.
"It was well deserved [for Leicester]," he told Amazon Prime. "It was a very strange game. We were just not good enough, even if we did still have enough chances.
"What we did with the balls was just not right. We played a really bad game, so it was well deserved.
"Our decision-making [was poor], maybe a little bit of luck was missing. That's how it is. We should have had more of those moments.
"I think we started okay, then we completely lost our rhythm and didn't get it back. From then we forced it, so there's nothing else to say.
"The circumstances too – Leicester played two days ago, they deserve it, absolutely.
"They had one shot on target. They didn't have plenty of chances. We should have defended better. We do that usually, why we didn't do it today is hard to explain.
"There were so many performances below normal level, there's no explanation."
