Milan have clinched five points in five games and are 15th in the standings after last weekend's 2-0 defeat at Juventus.
"Milan are paying the price for their injury problems," Buffon told Gazzetta dello Sport.
"But I do believe that Milan are still favourites to win the league title in the end."
Juve are unbeaten in Serie A so far, with three wins and two draws helping them move six points clear of the defending champions.
However, Buffon knows his team cannot get carried away.
"I'm happy with how things are going," Buffon said.
"We played well against Milan and I really liked the spirit that we showed throughout the game.
"But we cannot forget that Sunday's win was worth just three points.
"If you finish seventh in the league for two consecutive seasons as we have, then it is because you lack consistency.
"I don't want to make any predictions because we started the last few seasons well, but then we ended them badly."
Juve take on Chievo in Verona after the international break.