Losing lbs. vs. losing inches

I consider myself proportioned but I'm curvy too. I've been working out 3 days a week or more for about a year and I watch what I eat. I'm still not losing pounds. I've lost 2 inches off all my measurements though! I'm getting discouraged ...the number doesn't mean much to me because my clothes fit better and I feel better... But it's frustrating. I guess I'm building muscle in place of fat I'm losing and it's all just balancing out?

Basically, yeah, your diet must be really spot on for you to have a perfect balance of burning (i.e. you must be consuming your body weight in protein and around the suitable mark of calories). Not sure what your weight or height is, but if you really want to LOSE weight, then you simply have to burn more calories than you take in. But if your waist is slimming down, what else really matters?