Losing weight is different from gaining muscle. To lose inches you need to do an all over workout to burn calories. Whatever you heart desires, just get that heart rate up. Calories are nothing more than energy that is stored in your waist as fat. So burning calories equals burning fat which equals a smaller waist line.
Also, if you are consuming too many calories, that could be your problem. Find out what your suggested daily caloric intake is so you can make sure you are not consuming too many calories. Multiply your target weight by 14 and that will give you your approximate suggested daily caloric intake.
I hope it works out for you.