Jamie Vardy’s second-half strike saw under-pressure Claude Puel’s Leicester leave Stamford Bridge with all three points.
And Sarri described the response of his players as “strange” after going behind in the 51st minute and failing to threaten a comeback.
Chelsea’s chief said: “I didn’t recognise my own team after the goal. Our reaction was all wrong, this is not how I want us to play.
“After the goal, the reaction was strange, not in the right reaction, not as a team but as 11 different players so it was very strange.
“I think we could have done better. We had only to continue to play as in the first part of the match.
“There was time to score without a reaction as a team shocked, as a team in mental confusion.”
Having lost at Wolves a fortnight ago in similar circumstances, Sarri is struggling to find a solution to Chelsea’s problem.
Blues boss added: “If I knew I would solve the problem before this match. It’s difficult to understand because we have players with a lot of experience.”
Despite falling further behind league leaders Liverpool, Sarri insisted his side’s only focus is on achieving Champions League qualification.
He said: “For us in this season it’s impossible to fight for the Premier League.
“It’s not important that Liverpool [move further ahead], for us in this moment it’s important to stay close to the first four positions.”
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