DearEsq: Can a city inspector go into the neighbor’s yard and take pictures of my house and yard even though I have a privacy fence separating my property from my neighbor’s property?
This will largely depend on the laws in your specific state, and even in your municipality. Also, the question of whether the city inspector can go into your neighbor’s yard is a separate question from whether they can take pictures of your property from your neighbor’s yard (with or without a privacy fence).
While property owners and property holder’s generally have an expectation of privacy for themselves when on their property, it is different when talking about photographs being taken when the photographer is not actually on your property. Think of Google creating their maps, for example.
Your best bet is to contact the agency under which the city inspector operates and discuss this with them. If you feel you have been legally wronged, discuss it with an attorney in your area who is familiar with local and state laws governing the behavior of city inspectors.