Losing inches is great. The muscle you are gaining from exercising is replacing some of the fat so that it only looks like you are breaking even. This isn't that uncommon for our weight range.
I have about 30 lbs to lose as well and the same thing has been happening to me. I increased my exercise substantially in the past two months, but I I was losing 1 lb one week, 4 oz the next, and 0 the following week and so on, but meanwhile my waist size went down a whole inch.