Really hilarious how you are using that statement to reach the conclusion that Jiraiya > Itachi. Then you'd have to accept that Jiraiya > Itachi, Kisame,
and backup (i.e. other Akatsuki members). You have absolutely no credibility if you think Jiraiya is taking down Itachi, Kisame, and other potential Akatsuki members single handedly.
Meanwhile, you conveniently ignore that 13 year old Itachi embarrassed Orochimaru with the utmost of ease, to the point where Orochimaru lived the rest of his life bitterly coveting Itachi's power . . . which didn't even see a large amount of to begin with. This same Orochimaru was the genius of the Sannin and Jiraiya's equal. Furthermore, by Jiraiya's admission, his superior, as he admitted he could not bring him back.
Kisame spoke out of pure reputation. He never saw Jiraiya fight; he has only heard stories about him, probably vague and exaggerated. As Shikaku told us, legends from the past are
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. No reason for the guy who was later able to go toe-to-toe with the Hachibi to feel outclassed by the likes of Jiraiya.
As for Itachi, he had every reason to inflate Jiraiya's power. Itachi is a double agent, perhaps even Jiraiya's secret informant. He has no reason to engage one of his village's top shinobi in battle and potentially kill him. Thus, when Kisame inflated Jiraiya's power, Itachi went along with the story. It was a convenient way to avoid confrontation with Jiraiya.
To take that statement literally you'd have to do several things:
1. Ignore Itachi's intentions as a double agent
2. Ignore the fact that Kisame never saw Jiraiya fight
3. Ignore the fact that hype based on reputation is rarely accurate (i.e. Kisame)
4. Ignore Akatsuki member's strength (considering you believe Jiraiya can take multiple members alone)
I mean think about it; if strength was determined by reputation, where does that put Gai? Kakashi is renowned around the world for his Sharingan capabilities. Every single time he fought an opponent, he was immediately recognized, as were his signature abilities (Raikiri / Chidori), even if it were in the hands of Sasuke. Meanwhile, Gai is Kakashi's equal but . . . nobody ever heard of him, even if his power is comparable to Kakashi, and leaves Kakashi in the dust with 8th gate.
The guy wielded the power to pressure and nearly kill Juubi Madara. Gai is literally the strongest person in the world that hasn't been touched by the hand of the Naruto-verse's "god" . . . and yet despite his power, the man has no global reputation whatsoever. He has been taken as a joke by all those who fought him / alongside him, and only after he is seen fighting is he properly acknowledged. That goes to show just how inaccurate and hole-riddled that hype can be.
Think of it this way . . . paste Kisame talking about Gai in that sentence, before he fought him. What would he say? Some weak guy in a green jumpsuit? A fighter that isn't too big of a threat? Something along those lines? Would that make his statement accurate? Would Kisame have had any idea that he was talking about the strongest man in the world?