Can the method local inner class object access method’s local variables?

No, a method local inner class object can not access the method local variable.
Reason: The local variables are not guaranteed to live as long as the local inner class object. The method local variable live on stack and exist only till the method lives, their scope is limited only code inside the method they are declared in. But the local inner class object created within the method lives on heap and it may exist even after the method ends if in case the reference of this local inner class is passed into some other code and is stored in an instance variable. So we can not be sure that the local variables will live till the method local inner class object lives, therefore the method local inner class object can not access the method local variable. To access the method local variables, the variable has to be declared as final.