The defeat at the San Siro left England with no wins from five games in the competition and a worrying lack of goals with only one more match to play before they travel to Qatar for the World Cup.
England have not scored a goal in open play in this season's Nations League and manager Gareth Southgate was booed by a large section of the away crowd.
"It's really difficult to pinpoint why we're not scoring, because I think we're getting into the right areas," Southgate said after the match.
"We had the moments that we had in the past we just didn't deliver the final piece of quality tonight.
"I understand the reaction at the end because that's the results we've had in this competition and yeah it's an understandable emotional reaction."
Italy still have a chance of topping the group and making the playoffs but they will need to beat Hungary in Budapest on Monday after the surprise leaders won 1-0 in Germany.
"We put in a good performance against a strong team, we were attack-minded, created chances and controlled the match while bringing home the win. We needed this kind of victory against a top opponent," said Raspadori.
"We want to return to being the team we were before and put Italy back where we belong."
Player ratings from the match can be seen in the picture gallery above. To view the next image, click on the arrows or swipe if on a mobile device.