Mexico's inspired keeper Guillermo Ochoa ended Brazil's 10-game winning streak but while home fans were frustrated at the lack of goals manager Luiz Felipe Scolari says his side are improving with each match.
"In my opinion, and it is just my opinion, the team played at least 10 percent better than we played against Croatia," Scolari told reporters after a 0-0 draw in Brazil's second Group A game.
"The team is doing better and better and we still have a way to go and we can play well," he added. "I was pretty happy with what I saw on the pitch."
Brazil beat Croatia 3-1 in the tournament's opening match last Thursday. Mexico, too, won their first game against Cameroon a day later and were worthy opponents for the hosts in a match that was more exciting than the scoreline suggested.
"Here in Brazil we tend to believe that other players are not as good as we are and we thought that Mexico weren't any good but today they played as well as we did," Scolari told reporters.
"They had around the same possession, around the same number of shots. They know how to play football. I don't think we got the result we expected yet I'm very pleased.
"They had a very good goalkeeper who had a very good day and that's why we didn't win."
Mexico stopper Ochoa was in outstanding form, making several brilliant saves that won him the man-of-the-match award.
Scolari paid tribute to the France-based keeper and at the same time warned his players they need to hit the net in their final group match against Cameroon next Monday.
"We simply have to get goals," he said. "That's what we lacked today. We had three or four chances but they had a very good goalkeeper. He was spectacular."