Yes, losing inches is really what matters too. I have a friend who is naturally very skinny. She said she would always feel awkward against other girls her size in high school, because although she was still just as skinny she was 5-10lbs heavier than them because of all the extracurricular sports she would do.
When I wake up in the mornings, I not only weigh myself, but measure my waist, hips, and thighs. These are the areas that are troublesome for me. I've lost about 6lbs since April, and right now I've hit a plateau... Buuut I've also lost 2 inches on the waist, 1.5 inches on the hips, and .5 inches on the thighs. So even though I get frustrated, I know I'm still making progress.
Also, make sure you keep track of your calories in calories out. If you're eating on the low end (1200-1300 cals a day) but you're burning more than 200 cals each day from exercise, your body could be trying to compensate by holding on to extra fat.
For example, on a workout day, I could burn anywhere from 300-500 calories. If I eat only 1200 calories a day, then that means my body is only getting 1100-700 calories! That's no good! The body will try to store whatever nutrients it can at that point to make up for the extra activity you're doing.
Also, I know that it is suggested to eat many mini meals throughout the day to maintain a high metabolism. But I've found that just leads me to over eating. If I eat a small meal, then all I can think about for the next few hours is what my next meal will be. So find what works for you on what times of day are best to eat also. For me early morning, and midday are best for biggest meals. While dinner/dessert stay small.
Whatever you do, don't give up! Small progress is still progress