PHP+MySQL website cache ? Yes/No

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Hi,
  I am making an eshop and I am thinking about caching system.

You understand, that it cannot be entirely cached because visitor has it's own shopping cart etc.

So, my thought is to cache only few blocks like "Categories", "Navigation menu" etc. by storing it to an HTML file.

The advantages are that it doesn't have to query database and generate the HTML code again, but my question is: Is it good approach? Shouldn't we optimize database instead of restoring the data on harddrive?

Thank you for ideas,
Martin Zvarik

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