Ranieri took over from Nigel Pearson last summer and the Italian was keen to quickly raise the belief in his squad.
Leicester narrowly avoided relegation last term, but Ranieri felt that they had the ability to challenge at the right end of the Premier League table this time around, and he has been proved correct with his prediction.
The Foxes currently lead in England’s top flight after 16 matches, and Albrighton believes Ranieri deserves great credit for their rise.
"When he first came in at the start of the season, his words were, 'I don't think you believe how good this group of players are, if you get that belief in yourself, you will go further as a group,'" Albrighton said.
"So we are starting to believe that ourselves. If we can believe it fully like he says then maybe he's right.
"Two or three weeks ago we were told we had a tough run of fixtures playing Manchester United, Swansea and Chelsea and we've come out of that with seven points. We've just got to keep it going.
"If we take that confidence up to Merseyside for the games with Everton and Liverpool over Christmas we won't go far wrong."
Ranieri’s appointment was initially a very controversial one, but it is now looking like a masterstroke by the Foxes board.
Whether Leicester will be able to protect their position at the top of the table remains to be seen, but their start has been so impressive they have already built up a sizeable advantage over some of the biggest teams in the country.
Leicester are 20 points clear of last season’s champions Chelsea, while they are also nine points away from Tottenham Hotspur in fifth.
The Foxes are the top scorers in the Premier League, and their next match comes against mid-table Everton.