We consider approaches to cosmological parameter estimation in the inflationary cosmology, focussing on the required accuracy of the initial power spectra. Parametrizing the spectra, for example by power-laws, is well suited to testing the inflationary paradigm but will only correctly estimate cosmological parameters if the parametrization is sufficiently accurate, and we investigate conditions under which this is achieved both for present data and for upcoming satellite data. If inflation is favoured, reliable estimation of its physical parameters requires an alternative approach adopting its detailed predictions. For slow-roll inflation, we investigate the accuracy of the predicted spectra at first and second order in the slow-roll expansion (presenting the complete second-order corrections for the tensors for the first time). We find that within the presently-allowed parameter space, there are regions where it will be necessary to include second-order corrections to reach the accuracy requirements of MAP and Planck satellite data. We end by proposing a data analysis pipeline appropriate for testing inflation and for cosmological parameter estimation from high-precision data.

15 pages RevTeX file with figures incorporated. Slow-roll inflation module for use with the CAMB program can be found at http://astronomy.cpes.susx.ac.uk/~sleach/inflation/ This version corrects a typo in the definition of z_S (after Eq.1) and supersedes the journal version