The Reds lost the Champions League clash 2-0 after two goals from Stevan Jovetic.
Carragher told Sky Sports: “We didn’t perform well enough, we know that.
“We were slightly better second half, but still not good enough.”
Carragher added: “Nothing went to plan. It was a massive game for them, and a massive game for us, but they seemed to be more ready for it from the start, for whatever reason.
“It is something we have got to sort out but fortunately in the Champions League we have still got four games to put that right.”