The Three Lions were level in the dying minutes before Steven Gerrard's inadvertent flick-on caught the defence cold and Luis Suarez was on hand to bag his second goal of the game, which left Roy Hodgson's men beaten and on the verge of early elimination.
Jagielka told ITV Sport: "It is gutting. We played so well in spells but things didn't go our way. Steve Gerrard flicked the ball on, Suarez was onside and you hope he mishits one but he finds the target and he wins the game.
"It is a similar story to Italy, we played pretty well but not good enough. We are very disappointed as defenders. That is the last thing you want to see from a punt down the field. Everyone is absolutely devastated in there.
"We had them on the back foot after we scored. There is a small chance still. We have to go out there against Costa Rica and put in a good performance and come away with something."
This World Cup is the first in which England have lost their opening two games.