doubt Method local inner class

[Shashank Sharma]

  
class MyOuter2
{
	int outvar=8;
	void method()
	{
		class Inner2
		{	int x=5;
			void useOuter()
			{
				System.out.println("outvar"+outvar);
				System.out.println("local variable"+x);                                      //1
				
			}
		}
		Inner2 in=new Inner2();
		in.useOuter();
		System.out.println("local var outside"+in.x);                                                   //2
	}
	
}
class test
{  public static void main(String args[])
     {System.out.println("Using MLIC");
		MyOuter2 m2=new MyOuter2();
		m2.method();
       }

}

according to the book a method local inner class object cannot use local variable of the method unless they are marked final.
but in the code above I can access the local variable from both the places 1&2.

[Pramod P Deore]

local variable means variable declared inside method in which your local inner class is defined.

class MyOuter2  
 {  
     int outvar=8;  
     void method()  
     {  
	 int  y = 10;
         class Inner2  
         {   int x=5;  
             void useOuter()  
             {  
                 System.out.println("outvar"+outvar);  
                 System.out.println("local variable"+x);                                      //1  
		System.out.println("local variable"+y);                                      //error here y  must be final  
                   
             }  
         }  
         Inner2 in=new Inner2();  
         in.useOuter();  
         System.out.println("local var outside"+in.x);                                                   //2  
     }  
       
 }  
 class Test  
 {  public static void main(String args[])  
      {System.out.println("Using MLIC");  
         MyOuter2 m2=new MyOuter2();  
         m2.method();  
        }  
   
 }  

[Harpreet Singh janda]

Local means the variables which belongs to outer class and are local to that particular method.
Think : - If you are not allowed to access the local members of your own local class then what is the use of variables in that context?