The Premier League Champions fell to defeat at the hands of Manchester United in the 179th Manchester Derby, leaving City 14 points adrift of table-topping Liverpool in the title race.
Although disappointed with the recent run of form, which has seen Guardiola's men claim just two victories in seven in all competitions, the Catalan boss believes his side have learned important lessons, as the Fourmidables look to mount challenges for the Champions League, FA Cup and Carabao Cup.
“We have to continue," he said. "We have other competitions to play. Maybe this will help us in the future to be better.
“We are not as consistent as the previous two seasons; that is the reality. The players are playing the way I want.
“We have won a lot of Premier Leagues in the last decade but sometimes you have to accept it.
“When I see my team, all the games except 15 or 20 minutes against Chelsea, I like the team and how they play.
“Maybe we need to improve and accept the reality.”
Hear what Pep had to say in part two of his post-Derby press conference in the video above...