I'm losing inches and not pounds? please help!?

I am 14, 114 pounds and I want to lose weight this summer before highschool. I am eating a good diet and doing 35 minutes of exercise on the elliptical and 15 minutes of walking (not that fast) I am probably eating about 1500 calories a day, and have been doing so for a month. I have only lost one pound but have also lost 2 inches, I was originally 4'8 but I am now 4'6. This is very bad, I cannot afford to be any shorter, I really want to look good for highschool, I'm tired of being so short and stalky, please help, what do I do?