Researchers apply the Ising model with nearest-neighbor correlations (INNC) in the problem of interpolation of spatially correlated data on regular grids. The correlations are captured by short-range interactions between “Ising spins”. The INNC algorithm can be used with label data (classification) as well as discrete and continuous real-valued data (regression). In the regression problem, INNC approximates continuous variables by means of a user-specified number of classes. INNC predicts the class identity at unmeasured points by using the Monte Carlo simulation conditioned on the observed data (partial sample). The algorithm locally respects the sample values and globally aims to minimize the deviation between an energy measure of the partial sample and that of the entire grid. INNC is non-parametric and, thus, is suitable for non-Gaussian data.