Yes, it is very normal for your muscles to retain water when you start/increase working out.
This can lead to little change (or even an increase) in the scale, even as you are burning fat. This isn't really muscle (it is hard to add muscle mass while running a calorie deficit to lose weight), but it is lean mass.
However, muscle and water are considerably denser than fat, and typically this shows up as inches lost, even if the scale is being unco-operative.
I'd definitely recommend using the tape to track your progress - it is a much more reliable measure than the scale.
The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.
| current weight: 178.0