Caching can be done with the Pro Plugin, which adds a field within each endpoint to easily set the cache time any endpoint.
The Pro Plugin uses WordPress transients to store the results of your API requests for the amount of time that you set. The cache time can be set differently for each endpoint request.
Caching will only work for GET requests and it will not cache error messages. It will only cache successful GET requests returned from your API and will include headers as well as the body.