Yes, that is what i meant with "inline variables". IMO this is usually a sign of code that is too long to be readable and if you really need that you should either split the function to make it more readable or, if that cannot be done, enclose the affected code in their own brackets (with a comment that makes it easy to distinguish). Brackets also make sure that the variable wont "outlive" its context (although again that is a sign of code that is too long).
Of course that is my opinion (and i'm generalizing of course), but that comes from my experience with working with others' code.