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Predictive coding has been proposed as a model of the hierarchical perceptual inference process performed in the cortex. However, results demonstrating that predictive coding is capable of performing the complex inference required to recognise objects in natural images have not previously been presented. This article proposes a hierarchical neural network based on predictive coding for performing visual object recognition. This network is applied to the tasks of categorising hand-written digits, identifying faces, and locating cars in images of street scenes. It is shown that image recognition can be performed with tolerance to position, illumination, size, partial occlusion, and within-category variation. The current results, therefore, provide the first practical demonstration that predictive coding (at least the particular implementation of predictive coding used here; the PC/BC-DIM algorithm) is capable of …