A new approach is proposed for lossless raster image compression employing interpolative coding. A new multifunction prediction scheme is presented first. Then, interpolative coding, which has not been applied frequently for image compression, is explained briefly. Its simplification is introduced in regard to the original approach. It is determined that the JPEG LS predictor reduces the information entropy slightly better than the multi-functional approach. Furthermore, the interpolative coding was moderately more efficient than the most frequently used arithmetic coding. Finally, our compression pipeline is compared against JPEG LS, JPEG 2000 in the lossless mode, and PNG using 24 standard grayscale benchmark images. JPEG LS turned out to be the most efficient, followed by JPEG 2000, while our approach using simplified interpolative coding was moderately better than PNG. The implementation of the proposed encoder is extremely simple and can be performed in less than 60 lines of programming code for the coder and 60 lines for the decoder, which is demonstrated in the given pseudocodes.