We extend an earlier work of Tosa to include the effects of inhomogene
ity in the cosmological evolution in Kaluza-Klein spacetime with a cos
mological constant. It is observed that the presence of inhomogeneity
drastically changes the evolutionary scenario such that our five-dimen
sional spacetime admits inflation in three-space and dimensional reduc
tion of the extra space. This result is at variance with an earlier co
nclusion of Tosa for homogeneous models that only a negative cosmologi
cal constant with more than one extra spatial dimension can provide in
flation of three-space and a small size of the extra one. The model al
so seems to suggest an alterative mechanism pointing to a smooth trans
ition from a primordial, multidimensional inhomogeneous phase to a fou
r-dimensional homogeneous one.