Italy striker Mario Balotelli powered home a close-range header to secure a 2-1 win over England on Sunday in their World Cup Group D match in Manaus.
Claudio Marchisio had fired Italy ahead after 35 minutes before England's Daniel Sturridge quickly levelled.
England, full of attacking intent, pushed for an equaliser but could not find a way past back-up keeper Salvatore Sirigu, deputising for the injured Gianluigi Buffon.
With Costa Rica beating Uruguay 3-1 in the earlier game in the group, England captain Steven Gerrard says his side must win their clash with Uruguay on Thursday.
Gerrard says England were criticised for playing "toothless" football at the last World Cup.
He says with their new attacking brand they were unfortunate not to draw with Italy.
