Many production systems send identical or near-identical prompts repeatedly. Prompt caching stores response results keyed by prompt hashes, serving cached responses for repeated queries. This dramatically reduces API costs and latency for common queries.
prompt_hash = hash(system_prompt + user_query)
if cache.exists(prompt_hash): return cache.get(prompt_hash) # Instant, free
response = call_llm(system_prompt, user_query) cache.set(prompt_hash, response, ttl=3600) # Cache for 1 hour return response
Claude handles Prompt Caching & Memoization tasks with excellent instruction compliance and structured output formatting.