Palacio was one of several players who suffered injuries during the last season and is now raring to go.
"Are we worthy of the Scudetto? We must take it one game at a time," he told the Corriere dello Sport.
"We have a good squad, of that I am convinced, and the important thing is to give our all. You'll see that the results will come. Our target is to be competitive and be up there with the top teams.
"I didn't expect to score 22 goals in my first year at Inter, so I surpassed my expectations, but I always like to improve. I really wanted to play more, so was upset by the two injuries that forced me to miss many games.
"Can I be the Capocannoniere? It's very difficult to manage that and I'd be happier to score fewer goals if it meant Inter won something."