Rapid weight loss (but no inches) has me concerned?

So I need some major advice and I hope someone is awake: I'm losing weight as a scary fast rate all of a sudden. My loss has been slow and steady (1lb, no pounds, 2lbs) and all of a sudden I'm dropping 3 in a week. I've lost 25lbs in the past 2.5 months. I started at 207 and I'm sitting at 182. I actually plateaued in the 190s for over a year and a half and I broke past that. Now I know weight loss isn't linear but..I'm worried. I've lost around 12inches total from the beginning of June to the beginning of July (4th of July weekend). I haven't been able to lift in about month but I've been doing body weight exercises to keep my LBM. Little bit of HIIT twice a week but that's about it. I eat around 1600 cals a day, give or take. It's been working pretty well for me. I'm 5'4 and 34-ish% body fat according to the electronic thingy. My inches have stopped going down, though that could be a personal error. I'm not "serial measurer," but I guess with how quickly I'm dropping weight, I figured inches would follow because that's how it has been up until this point. I guess I'm just worried it's eating at my muscle and not fat. Or this could be my way of my body catching up to the inches I lost in the Please, please help?