The Argentine striker has rued his side's physical problems this term, while praising Mateo Kovacic and Mauro Icardi
The Nerazzurri have dropped to seventh spot in the Serie A table after a number of disappointing results, and Palacio feels the absence of key players has hurt the club.
"If you asked me the reason why we've struggled for consistency, I'd tell you that the many injuries we've had play a part and Diego's in particular because he's a player who makes the difference," the striker told Sky Sport 24.
Palacio then went on to praise January signing Mateo Kovacic, while also having his say on Sampdoria youngster Mauro Icardi, who has been linked with a move to San Siro.
He added: "I saw right from the start that Mateo's capable of doing great things, we've improved with him here.
"Icardi's very good although we shouldn't yet think about the future, but simply focus on our remaining matches this season."
Inter are currently preparing for Wednesday's Serie A match versus Sampdoria.