European shares ended off earlier 3-1/2 year highs on Monday as fresh inflation and interest rate concerns and weak pharmaceuticals stocks such as Roche took the shine off a market powered by energy stocks, Reuters reported. Numico also weighed, plunging 5.7 percent as dealers deemed the Dutch food group's acquisition of Danish baby food rival EAC too expensive and said a planned rights issue to help finance the deal capped the stock. The FTSEurofirst 300 index ended 0.05 percent higher at 1,238.71 points, having retreated from an earlier peak of 1,242.88, its highest level since April 2002. Investors were reluctant to extend a two-week market rally of nearly 6 percent as colder temperatures lifted oil prices back above $58 a barrel, and amid caution ahead of U.S. reports on producer and consumer prices, due later in the week. Many observers said the reports should show relatively benign inflation in the world's biggest economy, quelling concern of sharp monetary tightening by the Federal Reserve. Interest rate worries also resurfaced in Europe after two European Central Bank policymakers said the ECB should not wait for an inflationary outbreak before raising euro zone rates. --More 2259 Local Time 1959 GMT
