Claude Puel was gutted after the final whistle at the King Power Stadium on Saturday afternoon.
Newcastle conceded a soft late goal when Joselu failed to compete for a high ball into the box and Vardy scored from minimal distance.
However, that was the home side’s only effort on target.
Newcastle were by far the better team and Claude Puel has now seen a six point gap open up between the Foxes and seventh placed Burnley.
Meanwhile, Newcastle went top ten and are only five points behind Leicester.
Goals from Shelvey and Perez won the match but the Leicester boss felt his side should have had a penalty in between, as Dummett challenged Mahrez.
The officials said no and the Leicester boss disagreed.
Paying tribute to Newcastle’s ‘strong defensive unit’, Claude Puel felt his side didn’t ‘play quickly and with quality. It was too slow’.
Certainly Newcastle won most of the second balls and Leicester rarely threatened.
Happy days for Rafa Benitez but food for thought for the Leicester boss.
“It was not enough today.
“We wasted a fantastic opportunity for this team to believe in themselves.
“It was not enough in the first half, it was better in the second half with our reaction, but it’s a shame.
“We will discuss together.
“We know when we play sometimes like today, against a team with a strong defensive unit, we have to play quickly and with quality.
“It was too slow.
“We believe in ourselves to come back with a good mentality, hard work in training and prepare for our next game with a good feeling.
“[On Riyad Mahrez’ penalty appeal] Yeah, he [Dummett] touched his foot, for me it is a penalty.”
Stats from BBC Sport:
Leicester 1 Newcastle 2
Newcastle: Shelvey 18, Perez 75
Leicester: Vardy 83
Possession was Leicester 66% Newcastle 34%
Total shots were Leicester 8 Newcastle 8
Shots on target were Leicester 1 Newcastle 4
Corners were Leicester 7 Newcastle 5
Referee: Stuart Attwell
Dubravka, Yedlin, Lascelles, Lejeune, Dummett, Ritchie, Shelvey, Diame (Hayden 81), Shelvey, Kenedy (Atsu 64), Gayle (Joselu 70)
Darlow, Manquillo, Clark, Merino
Crowd: 32,066 (3,200 Newcastle)
(Read Alan Shearer’s reaction to the result HERE)
(Instant NUFC fan/writer reaction to the 2-1 victory HERE)