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Due to the fundamental solutions are employed as basis functions, the localized method of fundamental solution can obtain more accurate numerical results than other localized methods in the homogeneous problems. Since the inverse Cauchy problem is ill posed, a small disturbance will lead to great errors in the numerical simulations. More accurate numerical methods are needed in the inverse Cauchy problem. In this work, the LMFS is firstly proposed to analyze the inhomogeneous inverse Cauchy problem. The recursive composite multiple reciprocity method (RC-MRM) is adopted to change original inhomogeneous problem into a higher-order homogeneous problem. Then, the high-order homogeneous problem can be solved directly by the LMFS. Several numerical experiments are carried out to demonstrate the efficiency of the LMFS for the inhomogeneous inverse Cauchy problems.