Can I be losing inches

This may seem like a stupid question but I really don't understand.. How does losing inches works? I have only lost 5 pounds this months, so I am so upset. Could it be that I'm losing inches and how does this happens and how many inches can I espect to lose. I tried on a pair of jeans that were too small two weeks ago and they fit but I can't figure out if it's just my imagination. Thanks for your support.

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