In a desperately disappointing evening at Molineux, 10-man City let a two-goal lead slip as Wolves rallied to win 3-2.
It leaves us in third, 14 points behind leaders Liverpool, who have a game in hand.
Guardiola says the gap is too big for City to be thinking about winning the title and reiterated his belief that his players should instead focus on catching second-placed Leicester.
“The gap has been big for a long time,” he said. “It is not realistic to think about the title race.
“I have been asked the question for a long time and it is the same answer.”
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It proved a tough night physically too with City down to 10 men after just 11 minutes when Ederson was shown a straight red card for a challenge on Jota outside the box.
And Guardiola said the task of taking on an extra man was also a key factor in the outcome.
“Eighty minutes 10 against 11 is so tough, so demanding. We could not defend the result.
“We have to think of the next game and about winning our games. It’s unrealistic to think about that [catching Liverpool]. In 48 hours we have another game.
“We have to be mentally strong because in less than two days we have another game.”
