Why is that sometimes on a weight loss programme one loses inches
rather than pounds (weight). I am not even exercising....so the
question of building muscle does not arise.

I will partly repeat my comment made elsewhere: The basic tenet of
physical fitness is much more then weightloss. It has 3 components of
:
1. Building aerobic endurance-- By walking( moderate speed),jog,
swimming, cycling, other sports
2. Toning and firming muscles-- By strength training- free weights or machines
3. Developing flexibility--- stretching and yoga
4. Sensible Diet-- Avoid empty calories and restrict intake of sugar
and salt- remember white is poison i.e refined foods have lot of sugar
and salt.
All the above have to be carried out together.
One more dimension is body fat percentage: for males: not more then 15
and for females not more then 23.
Even a 200 pound man can be physically fit and healthy if his body fat
does not exceed the limit stated above.
So one should not be overly bothered about inches and pound loss if
all of above 4 are carried out because the end result will be a
healthy body
Extremely important: Whatever lifestyle changes made have to become permanent.
regards,

Because a big target of these programs is women and losing five pounds
means nothing to them. Losing two inches will tell them if they can
fit into that outfit they want to get into. You know, the one that
will change their drab little lives and transport them to ecstasies
anly dreamed about if only they could lose that last two inches...