Let's take a look at the specs of the LX10: it says 1:1.4–2.8/8.8–26.4 on the front. You haven't left the EXIF in.
If we are taking a look at the image on the wide end (8.8mm) and are supposing that you appear sharp in your image as its most relevant and interesting part, the background will get blurring commensurate with 8.8mm/a (with a the aperture number) with respect to your focus plane. So with F8, the background blur will have the same diameter in the picture as a 1mm pimple on your nose.
If you focus double as far as you are actually standing, your nose will get 0.5mm of blurring (where it formerly got none) while the background blur shrinks to half of what it was before.
That's true in general: focusing to double the object-in-foreground distance will halve the background blur but will give the object-in-foreground then the same amount of blur that the background gets.
This halving of background blur (it's actually halving the diameter, not the area, so it is comparatively significant) would otherwise require a doubling of aperture number, getting you into diffraction area easily.
So if you can sacrifice some pimples for the background, consider a bit of backfocusing. And totally avoid focusing on something even before you: that adds to the background blur.