However, Mikael Forssells late strike gave the Midlands side all three points at a rain-swept St Andrew's.
"When Robbie Savage equalised I thought we were the team most likely to win," Hughes said after the 2-1 defeat.
"We were pushing forward at that point and switched off at the other end.
"Mikael Forssell is very good in those sort of situations and he was able to get in a shot off and it went into the net.
"It was disappointing as we were the better team in the second half but didn't defend as we should at this level and we were punished.
"We've had a good season so far but we now have to go for maximum points in the last three games to get into Europe. It is very clear what we have to do."